What Is A Cost Driver

To manage costs, one must classify drivers by their depth.

A cost driver is essentially the "root cause" or trigger of an expense. It serves as a link between the activities performed by a business and the resources those activities consume. what is a cost driver

The profound realization for a manager is that you cannot manage a cost directly; you can only manage the driver. To manage costs, one must classify drivers by their depth

To identify cost drivers, businesses can: To manage costs