A cost driver is a factor, such as machine-hours, that is used to allocate direct costs to a product. True O False

Activity-based costing can be used to allocate period costs to various products that the company sells. False True

3.Activity based costing (ABC) is a method of allocating the indirect costs of sales commissions to products. A. true b. false

Which of the following statements is FALSE? a. There is a cause-and-effect relationship between the cost driver and the amount of cost. b. Over the long run all costs have cost drivers. c. Volume of production is a cost driver of direct manufacturing costs. d. Fixed costs have cost drivers over the short run.