Question: A cost driver: 1. has a direct cause-effect relationship to a cost. 2. causes fixed costs to rise because of production changes. 3. can predict

A cost driver:

1.

has a direct cause-effect relationship to a cost.
2.

causes fixed costs to rise because of production changes.
3.

can predict the cost behavior of a variable, but not a fixed, cost.
4.

is an overhead cost that causes distribution costs to change in distinct increments with changes in production volume.

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