Cost driver

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March 5, 2018 at 10:44 am #440307
maan87
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Hi …plz help me with the following:

1. For long term variable overhead cost the cost driver is the volume of output. (This statement was written in a KAPLAN question) .
Can u give me example of which cost may be long term-variable coat and why ouput is the appropriate cost driver. One more thing which cost will be short-term variable cost?
March 5, 2018 at 1:54 pm #440339
John Moffat
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It depends on the context in which this sentence was written.

The volume of output is usually going to be the driver for variable overheads.
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