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QUESTION 2 (a) (6) What is a cost driver and how do costs react to the changes in cost drivers? Describe the equivalent units of
QUESTION 2 (a) (6) What is a cost driver and how do costs react to the changes in cost drivers? Describe the equivalent units of production. Why are they crucial in a process costing system? Explain each of these classifications, with examples of the types of costs that may be included. (1) period costs; product costs; variable costs; opportunity costs. (111) (iv) (Total = 4+5+ [4 + 4 + 4 + 4) = 25 marks)
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