MC 22 What is the purpose of a cost driver?
A. To allocate indirect costs to specific products or services
B. To track the cost of direct materials and direct labor
C. To calculate the cost of manufacturing overhead
D. To calculate the total manufacturing cost
Answer:A
MC 22 What is the purpose of a cost driver?
A. To allocate indirect costs to specific products or services B. To track the cost of direct materials and direct labor C. To calculate the cost of manufacturing overhead D. To calculate the total manufacturing cost
Explanation: A cost driver is a factor that causes or influences the cost of an activity, and is used to allocate indirect costs to specific products or services.