Engineered costs

Engineered costs is costs that result from a cause-and-effect relationship between the cost driver, output, and the (direct or indirect) resources used to produce that output.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Engineered costs. Costs that result from a cause-and-effect relationship between the cost driver, output, and the (direct or indirect) resources used to produce that output.