Activity Cost Driver

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Dictionary Says

Definition of 'Activity Cost Driver'

A factor that influences or contributes to the expense of certain business operations. In activity based costing (ABC), an activity cost driver is something that drives the cost of a particular activity. A factory, for example, may have running machinery as an activity. The activity cost driver associated with running the machinery could be machine operating hours, which would drive the costs of labor, maintenance and power consumption of running the machinery activity.
Investopedia Says

Investopedia explains 'Activity Cost Driver'

Activity-based costing is a type of costing that identifies activities within the business and estimates the resources required to fulfill each activity. An activity cost driver is a factor that effects the costs associated with an activity. Activity-based costing allows managers to determine the costs to perform an activity as well as the costs associated with not performing the activity For example, when a production line has to wait for a certain part to arrive from an external distributor or other manufacturing line, the manager can quickly determine the true cost of waiting for the part. Activity cost drivers attempt to provide a more comprehensive view of the actual costs of an activity, such as a manufacturing process.
Search results for

'Activity Cost Driver'

  • Commuters' University: On-The-Road Learning

    http://www.investopedia.com/articles/professionaleducation/09/commuters-university.asp
    ... driver's direct cost (maintenance, parking) the driver can expect to pay an annual
    driving cost of nearly ... can go beyond work-related commuting pro-activity. ...

  • 5 Wellheads of Profit in Domestic Energy

    http://stocks.investopedia.com/stock-analysis/moneyshow/5WellheadsofProfitinDomesticEnergy.aspx
    ... sector has been an important driver of the US ... giving chemical manufacturers a dramatic
    cost advantage over ... also benefit from the feverish activity in emerging ...

  • A Primer On The Railroad Sector

    http://www.investopedia.com/articles/stocks/11/primer-on-railroad-sector.asp
    ... are not the fault of truck driver, and the ... requirements and ongoing access to
    cost-effective capital is ... railroads do not "make" economic activity, but they do ...

  • Analyzing Show Biz Stocks

    http://www.investopedia.com/articles/stocks/10/show-biz-stocks.asp
    ... New digital technology applications represent a key growth driver. ... been a hotbed
    for consolidation and M&A activity. ... serve to hedge against the cost of failures ...

  • Investing In The Healthcare Sector

    http://www.investopedia.com/articles/stocks/08/investing-in-healthcare.asp
    ... Controlling costs among numerous cost centers is very ... fee margin is the primary driver
    of profits. ... May 18th will unmistakably see some interesting activity. ...

  • You Can Still Clean Up With Clean Harbors

    http://stocks.investopedia.com/stock-analysis/2012/You-Can-Still-Clean-Up-With-Clean-Harbors-CLH-WM-RSG-BP-VE0118.aspx
    ... the landfill segment, buoyed by shale activity in the Bakken region, was a primary
    driver. ... While investors should be mindful of the cost structure, the ...

  • Copper Remains A Value

    http://stocks.investopedia.com/stock-analysis/2012/Copper-Remains-A-Value-CU-TGB-COPX-SCCO0105.aspx
    ... Increasing factory activity in the US is also a major driver, and analysts estimate
    that the ... For more, see Using ETFs To Build A Cost-Effective Portfolio.). ...

  • JB Hunt: A La Intermodal

    http://stocks.investopedia.com/stock-analysis/2011/J.B.-Hunt-A-La-Intermodal-JBHT-BRK.A-NSC-UPS-FDX-AAWW-ODFL0720.aspx
    ... Despite concerns about economic activity, railroad volume, shipping container volume
    and the ... That puts JB Hunt (Nasdaq:JBHT) in the driver's seat, and the ...

  • 4 Psychological Traps That Are Killing Your Portfolio

    http://www.investopedia.com/articles/financial-theory/11/psychological-factors-that-hurt-your-portfolio.asp
    ... some of the psychological mistakes that cost investors in ... How long would a race car
    driver survive if ... May 18th will unmistakably see some interesting activity. ...

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