A cost driver is a factor, such as machine-hours, that is used to allocate direct costs to a product. True O False
A cost driver is a factor, such as machine-hours, that is used to allocate direct costs to a product. True O False
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter15: Lean Accounting And Productivity Measurement
Section: Chapter Questions
Problem 10DQ: Why are units shipped used to calculate the value-stream product cost?
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Question
![A cost driver is a factor, such as machine-hours, that is used to allocate direct
costs to a product.
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae7e18e4-7e9a-42b5-bab1-90f64bee284b%2F475a307a-5018-4816-a6c3-61fc33633ee9%2Fmrclvv4_processed.png&w=3840&q=75)
Transcribed Image Text:A cost driver is a factor, such as machine-hours, that is used to allocate direct
costs to a product.
True
False
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