Cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with help of

A. production driver

B. cost driver

C. price driver

D. estimation driver

Answer: Option B

Solution(By Examveda Team)

Cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with help of cost driver. Cost drivers are the actual activities that cause the total cost in an activity cost pool to increase.