ACCA PM Practice Questions - ACCA Applied Skills - Performance Management (PM) Exam

Under activity-based costing (ABC), what is the role of a cost driver?

It is the total overhead absorbed by a product It is the factor that causes the cost of an activity to change It is the rate used to apply direct labour to output It is the budgeted profit margin per unit

Correct Answer:

It is the factor that causes the cost of an activity to change

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