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Cost Drivers


The number of boxes of materials moved and the weight of materials handled are two ways of quantifying the material-handling activities, and management may consider them as alternative cost drivers. Questions that can help us understand what influences each of these drivers are: What can we do to increase the number of client referrals? (Who are our current referral sources? Read more Adam Colgate Online M.B.A. - Is It Worth It? Login or Sign up Organize and save your favorite lessons with Custom Courses About Create Edit Share Custom Courses are courses that you create from Study.com lessons. this contact form

Please Choose a Product. Email is not a valid email Email already in use. Choosing the right cost driver may positively affect management control. Horngren, George Foster e Srikant M.

Cost Pool

How do we protect the current reimbursement rate from being reduced?)Pages1 2 next › last » TopicsManagementTrendsReimbursement Printer-friendly version Current Issue Spring 2017 View issues archive Get the Digital Edition Subscribe For these companies it is not sufficient to merely spread overhead costs to products by using a single factor such as direct labor hours or production machine hours. Balance Sheet 11. Inventory and Cost of Goods Sold 18.

Study.com video lessons have helped over half a million teachers engage their students. It is also necessary to consider the cost behavior of the relevant cost, which refers to the cost’s response to the activity of the driver. Activity Based Costing is based on the belief that activities cause costs and therefore a link should be established between activities and product. Cost Driver Examples In Manufacturing Cost drivers for the clinic include staff/labor costs, administrative costs, and facility costs.

What is an incremental cost? Step 2: Please check your email and click the confirmation link. 255,272 Subscribers Course Outline Menu PRO Features Log In Course Outline Take the Tour PRO Features Log In Q&A What Go to Product Promotion: Homework Help Ch 19. http://www.investopedia.com/terms/a/activity-cost-driver.asp Use 'cost driver' in a Sentence Bill had known the true output of his machine should of been much less but was lazy and let the machine run due to the

Go to The Dynamic Business Environment: Homework Help Ch 2. What Is A Cost Driver Quizlet financial manag... Consequently, the small-box unit wouldn't have a working incentive, because the more boxes it handles, the more cost it would unfairly incur -- a potential management-control problem. ACCESS NOW!

Types Of Cost Drivers

You soon realize that a particular brand of car stereos have had an abundance of returns, because the volume button does not work well. Future Value of a Single Amount 25. Cost Pool Trading Center Activity Driver Analysis Activity-Based Costing - ABC Activity Center Driver Overhead Rate Nonstandard Auto Insurance Preferred Auto Coverage Cost Accounting Standard Auto Insurance Next Up Dictionary: # a b Cost Driver Analysis I am a student I am a teacher Start your Free Trial To ContinueWatching Get instant access to this lesson - and over 55,000 others.

Break-even Point 27. http://asmwsoft.net/cost-driver/cost-driver-cost-center.html Bonds Payable 21. Also Viewed [Direct Labor Hours] | How to Calculate Direct Labor Hours & Allocation Base [Cross-Subsidization] | What Is Product-Cost Cross-Subsidization? [Cost Allocation] | What Methods of Cost Allocation Are Used This offer is not available to existing subscribers. List Of Cost Drivers

Financial Statements 10. It is used to assign activity costs to cost objects. Area of Study Agriculture Architecture Biological and Biomedical Sciences Business Communications and Journalism Computer Sciences Culinary Arts and Personal Services Education Engineering Legal Liberal Arts and Humanities Mechanic and Repair Technologies http://asmwsoft.net/cost-driver/cost-accounting-cost-driver.html back Your selected plan: {{cart.product.displayName}} You are joining: {{cart.product.institutionName}} {{ cart.coupon.trialDays ?

Sometimes managers will develop a strategic plan and then figure out the related revenue and cost drivers. Cost Driver Rate These cost drivers make up the financial metrics for labor costs. Students' quiz scores and video views will be trackable in your "Teacher" tab.

Revenue drivers include the number of beds available, number of client referrals, average length of stay, and the reimbursement rate per bed/day.

Privacy policy About Wikipedia Disclaimers Contact Wikipedia Developers Cookie statement Mobile view Dictionary Term of Day Articles Subjects Sign Up BusinessDictionary BusinessDictionary Dictionary Toggle navigation Uh oh! It is used to assign cost of a resource to activity or cost pool. Local US & World Sports Business A&E Life Jobs Cars Real Estate Skip to main content. Activity Driver Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply.

Activity Based Costing 32. Back members login here × Start your FREE trial. The Dynamic Business Environment:... his comment is here In marketing, cost drivers are Number of advertisements, Number of sales personnel etc.

Go to Economics and Business: Homework Help Ch 4. Examples[edit] Some examples of indirect costs and their drivers are: indirect costs for maintenance, with the possible driver of this cost being the number of machine hours; or, the indirect cost In this case, for each hour of direct labor required for production, the company would allocate $50 of indirect overhead costs to the production activities or output. Your Cart is Empty.