Sunday, November 23, 2008

What is a Cost Driver?

Cost driver is any expense that causes change of costs over a defined period of time in a company. The activities that cause these expense are called are also called activity bases or activity drivers.

Total Annual Overhead
Units of Cost Driver
= one $ per unit of cost driver

No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.