“If you can’t explain what drives a cost, you can’t control it effectively.”
Relate to a company's strategic choices, such as location, scale of operations, or the technologies used. what is cost drivers
Some examples of cost drivers include:
Used in Activity-Based Costing (ABC) , these allocate overhead costs based on specific operational activities. “If you can’t explain what drives a cost,
“If you can’t explain what drives a cost, you can’t control it effectively.”
Relate to a company's strategic choices, such as location, scale of operations, or the technologies used.
Some examples of cost drivers include:
Used in Activity-Based Costing (ABC) , these allocate overhead costs based on specific operational activities.