Cost Driver In Activity Based Costing __full__ Now

| Characteristic | Explanation | |----------------|-------------| | | There is a direct cause-and-effect relationship between the driver and the cost. | | Measurable | The driver can be quantified reliably. | | Cost-effective | The benefit of using the driver exceeds the cost of measuring it. | | Behavioral | It encourages desirable behavior (e.g., reducing setups reduces cost). |

Most ABC systems categorize drivers based on how they measure consumption: What Is an Activity Cost Driver? - Investopedia cost driver in activity based costing