T-Town Hockey is back in action at the Huntington Center on Saturday, November 7, when the Toledo Walleye take on Adirondack. The puck drops at 7:15 p.m., but youâll want to arrive early for the Opening Night Craft Beer Bash, taking place from 5-7 p.m. in the Aquarium.
Activity Cost Driver is measure of frequency and intensity of demand placed on activities by cost object. It is used to assign activity costs to cost objects. To carry out a value chain analysis, ABC is a necessary tool. To carry out ABC, it is necessary that cost drivers are established for different cost pools.
DEFINITION of 'Activity Cost Driver'. A factor that influences or contributes to the expense of certain business operations. In activity based costing (ABC), an activity cost driver is something that drives the cost of a particular activity. A factory, for example, may have running machinery as an activity. The activity cost driver associated with running the machinery could be machine operating hours, which would drive the costs of labor, maintenance and power consumption of running the machinery activity.