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What is a Cost Driver? A cost driver is the unit of an activity that causes a business to incur costs. In simple terms, it is the root cause of why a specific cost occurs. If you can identify and measure cost drivers, you can better predict, control, and reduce expenses.
What is a Cost Driver? A cost driver is the unit of an activity that causes a business to incur costs. In simple terms, it is the root cause of why a specific cost occurs. If you can identify and measure cost drivers, you can better predict, control, and reduce expenses.
