KingsofAces9436 KingsofAces9436
  • 08-01-2020
  • Business
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LO 6.2What conditions are necessary to designate an activity as a cost driver?

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eyukwe
eyukwe eyukwe
  • 09-01-2020

Answer:

if an activity increases the over head, we can safely associate such activity as a cost driver.

Explanation:

As the cost drivers increases, the business over head cost also increases, examples of cost driving activity, are number of hires on receiving wages/ salaries, amount of financials invested in marketing company product or service.

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