cost driver
Definition
In activity based costing (which states that products consume activities and activities consume resources) any factor which causes a change in the cost of an activity. An activity can have more than one cost driver attached to it. For example, a production activity may have the following associated cost-drivers: a machine, machine operator(s), floor space occupied, power consumed, and the quantity of waste and/or rejected output.
cost driver is in the Accounting & Auditing and Decision Making, Problem Solving, & Strategy subjects.
cost driver appears in the definitions of the following terms: activity attributes, activity based costing (ABC), forcing, cost driver analysis and cost estimating relationship (CER)
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