BANK SEBI Grade A Phase 1 & Phase 2 Mock Test 2024 Accounting and Auditing Cost and Management Accounting
In activity-based costing, what is the role of a 'cost driver'?
1
It is a factor that causes overhead costs to increase.
2
It allocates costs to products based on their duration of production.
3
It directly links the amount of cost with the level of activity.
4
It represents the maximum cost a company can incur.
5
It is used to eliminate unnecessary costs from the production process.