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A cost driver: 1. has a direct cause-effect relationship to a cost. 2. causes fixed costs to rise because of production changes. 3. can predict
A cost driver:
1. | has a direct cause-effect relationship to a cost. | |
2. | causes fixed costs to rise because of production changes. | |
3. | can predict the cost behavior of a variable, but not a fixed, cost. | |
4. | is an overhead cost that causes distribution costs to change in distinct increments with changes in production volume. |
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