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    Cost drivers and activity based costing

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    I need help in answering these questions. I need a word count of 200 for each questions.

    DQ 2 What are cost drivers? How do cost drivers relate to cost pools? What are some cost pools? Name two or three different cost drivers for each of these cost pools.

    DQ 1 What activity-based costing? What are some of the key elements of activity-based costing? How does this method differ from a more traditional costing method?
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    DQ 2 What are cost drivers? How do cost drivers relate to cost pools? What are some cost pools? Name two or three different cost drivers for each of these cost pools.

    Cost drivers are as the name indicates which drive the cost. What it means is that the total cost would change as the volume of cost driver changes. Cost pools are the activities for which we accumulate the costs. In a production environment, overhead costs are accumulated in different cost pools which are the activities which are carried out in the production environment. Cost drivers are which drive the costs in these cost pools. For example, some cost pools could be setup costs, material movement costs, ordering materials. These are ...

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