Yes cost drivers are the main elements causing specific cost to be happend that's why it has direct relationship with cause-effect.
In labor intensive industry direct labor cost is used as cost driver.
No gross receipt tax does not has any relationship with production of goods that's why not a direct cost.
cost relationship between direct and indirect.
Other direct cost is direct cost other than direct material and direct labor which is prime cost of production.
prime cost = direct labour cost + direct material cost + direct expenses
Volume based drivers are cost drivers which relates to the things like no. of units made, direct labout cost and number of direct labour costs etc and is similar to the tpe of cost driver for unit-related activities
Direct cost is cost of product while direct costing is the process which study or accounts the direct cost allocation to products.
A cost driver is a factor that causes variations in a cost.
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
cost driver examples
is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost, is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost,
Direct costs: Those costs that are linkedto a specific cost objective like product/service. Indirect costs: Those costs that CANNOT be directly linked to a particular cost objective and incurred for multiple cost objectives. Can also be called Common Cost.