What Is The Cost Driver -

: In automated manufacturing, the time a machine runs drives electricity, maintenance, and wear-and-tear costs.

: Specific operational factors used in Activity-Based Costing (ABC), such as the number of purchase orders, inspections, or setups. what is the cost driver

: In retail or support, every call, return, or transaction consumes staff time and administrative resources. Types of Cost Drivers : In automated manufacturing, the time a machine

Think of it as the for an expense.

If you don't know the true cost driver, you might price your product incorrectly. : In automated manufacturing