When determining electricity consumption for a particular time period, the number of units consumed determines the total electricity bill. In such scenarios, the number of power units consumed becomes the cost driver.
How Activity Cost Drivers Work
Cost factors directly affect business activities. Several cost drivers can be associated with activities. For example, direct labor hours are the driving force behind most product manufacturing activities. High labor costs increase the cost of producing all of a company's products or services. When the cost of maintaining inventory is high, so are the costs of manufacturing products and providing services.
To learn more about Cost Driver
https://brainly.com/question/14904453
#SPJ4
