ABM Cost Driver Analysis Cost drivers are factors that have a direct cause-effect relationship to a cost Limit number of cost drivers Cost of measurement should not exceed benefit of using the cost driver ▣Easy to understand Directly related to activity being performed Appropriate for measurement 海南大学董建华讲授 11-18 海南大学董建华讲授 11- 18 Cost Driver Analysis Cost drivers are factors that have a direct cause-effect relationship to a cost ◼ Limit number of cost drivers ◼ Cost of measurement should not exceed benefit of using the cost driver ◼ Easy to understand ◼ Directly related to activity being performed ◼ Appropriate for measurement ABM