Question: Q1. In explaining cost behaviour, we refer to the 'level of activity' as a cost driver. What do we mean by 'level of activity' and

Q1. In explaining cost behaviour, we refer to the 'level of activity' as a cost driver. What do we mean by 'level of activity' and why is it a cost driver? What role do cost drivers play in identifying cost behaviour patterns?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!