cost driver



A factor that can 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.

Use cost driver in a sentence

  • Bill had known the true output of his machine should of been much less but was lazy and let the machine run due to the total cost driver input he went with.

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  • I wondered what the cost driver would be and how much we would have to change the price of the item.

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  • You need to figure out how to adapt to any cost driver and set the new price accordingly before it is to late.

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