ExamVeda
Login
Home

In production variables such as level of activity or volume of...

This question belongs to Commerce Costing
Costing
?

In production, variables such as level of activity or volume of company activity are known as

Answer & Solution
Correct Answer: Option A
In production, variables such as level of activity or volume of company activity are known as cost drivers. A cost driver is the direct cause of a cost, and its effect is on the total cost incurred.
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.
Keep Learning

Related Questions on Costing

Basic objective of cost accounting is ________
A. tax compliance. B. financial audit. C. cost ascertainment. D. profit analysis.
Process costing is suitable for ________.
A. hospitals B. oil refing firms C. transport firms D. brick laying firms
Cost classification can be done in ________.
A. two ways B. three ways C. four ways D. several ways
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost B. historical cost C. sunk cost D. shutdown cost
More Related Questions on Costing