Cost drivers and cost pools
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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.
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Cost driver is anything which causes resources to be consumed or costs to be incurred. As the same indicates, costs drivers drive costs. That is they cause costs to change as the cost driver changes.
Cost Pools are used in Activity Based Costing and are activities for which costs are to be measured. In Activity Based Costing, costs are initially accumulated for ...
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