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13 October, 23:30

LO 6.2What conditions are necessary to designate an activity as a cost driver?

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  1. 14 October, 01:12
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    if an activity increases the over head, we can safely associate such activity as a cost driver.

    Explanation:

    As the cost drivers increases, the business over head cost also increases, examples of cost driving activity, are number of hires on receiving wages / salaries, amount of financials invested in marketing company product or service.
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