In the world of business, costs don’t just "happen." They are triggered. Every expense a company incurs—from the electricity powering the lights to the raw materials feeding the production line—is the result of a specific activity or event.
If you don't know your drivers, you might cut the wrong things. cost driver analysis example
After interviewing shop floor supervisors and reviewing processes, four major overhead activities are identified: In the world of business, costs don’t just "happen