Difference between revisions of "Cost driver"
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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
:[[Cost driver]]. A variable, such as the level of activity or volume, that causally affects costs over a given time span. | :[[Cost driver]]. A variable, such as the level of activity or volume, that causally affects costs over a given time span. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Cost driver]]. The primary factor that causes a cost. | ||
[[Category: Accounting]][[Category:Articles]] | [[Category: Accounting]][[Category:Articles]] | ||
Latest revision as of 12:21, 14 July 2020
Cost driver is a variable, such as the level of activity or volume, that causally affects costs over a given time span.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Cost driver. A variable, such as the level of activity or volume, that causally affects costs over a given time span.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Cost driver. The primary factor that causes a cost.
