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Cost driver is the basic activity which increases the or utilize the cost while cost pool is that in which all costs are jointly shown for example machine setup cost is cost driver while over all overheads is cost pool.
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Is cost allocation base a cost driver?
Yes, it is. When used for allocating costs, a cost driver is often called a cost-allocation base
How does transfer pool rate works in a bank?
The bank uses a single rate to credit all of the bank branches. This rate is a weighted average cost of all funds for a banks.
If you wanted to allow only one driver to use a specific fleet card what would you do?
Use a card that requires a security PIN each time it's used - with strict instructions to the user that THEY are responsible for every transaction the card is used for.
What is the market cap for Pool Corporation POOL?
As of July 2014, the market cap for Pool Corporation (POOL) is $2,498,512,422.73.
How much money does a big mansion cost in Beverly Hills?
my dad has a "mansion" in Beverly hills. it cost him 14,750,000. and it has 7 beds 8 1/2 baths. and 9890 sq. feet. a pool tennis court/basketball court. the works!
What is the Formula for cost allocation rate?
allocation rate=cost pool amount/ cost driver volume
How does Activity-Based Costing work?
Activity-based costing (ABC) systems for applying overhead is a two-stage procedure.The first step begins with identifying significant activities in the production of the products (that is grouping similar activities into an activity pool) and assigning a cost to that pool according to the amount of resources consumed by the activity pools.In the second step:A cost driver (an event that results in the incurrence of cost) is identified and quantified ($$$) for eachactivity pool.A pool rate is computed for each activity by dividing the cost of each activity pool by the respective cost driver quantity.The activity cost for each product line is determined by multiplying the pool rate by the cost driver quantity incurred by each product line.Finally, to arrive at the activity cost per unit of product the activity cost for each product line is divided by each product line's production volume.The advantage of this system of applying cost is that it fairly and reflectively distributes cost among products because of the incorporation of multi cost drivers. At each step of the production (activity pools), there is a cost driver that has a rate that reflects the cost of producing with that activity. Thus by the end of the production, the costs assign are reflective of the process and costs.Hope that answers your question :)
How does Activity Based Costing work?
Activity-based costing (ABC) systems for applying overhead is a two-stage procedure.The first step begins with identifying significant activities in the production of the products (that is grouping similar activities into an activity pool) and assigning a cost to that pool according to the amount of resources consumed by the activity pools.In the second step:A cost driver (an event that results in the incurrence of cost) is identified and quantified ($$$) for eachactivity pool.A pool rate is computed for each activity by dividing the cost of each activity pool by the respective cost driver quantity.The activity cost for each product line is determined by multiplying the pool rate by the cost driver quantity incurred by each product line.Finally, to arrive at the activity cost per unit of product the activity cost for each product line is divided by each product line's production volume.The advantage of this system of applying cost is that it fairly and reflectively distributes cost among products because of the incorporation of multi cost drivers. At each step of the production (activity pools), there is a cost driver that has a rate that reflects the cost of producing with that activity. Thus by the end of the production, the costs assign are reflective of the process and costs.Hope that answers your question :)
What is a cost driver?
A cost driver is a factor that causes variations in a cost.
Example of cost driver?
cost driver examples
How much does it cost to recoat a pool?
cost to recoat a ,pool 20 by 40
What is cost pool?
It is a pool where cost data are relating to particulat activity is accumulated...it is similar to the concept of cost centre.
How much does a stainless steel competition pool cost?
How much does a stinless swimming pool cost
Define cost pool value?
An entity's cost pool value is defined as a grouping of individual costs, typically by department or other category. Cost pool values allow for cost allocation decisions to be made.
How would you define a cost driver?
The term "cost driver" refers to the activity that causes cost to change.
What is the average cost of a gunite pool in Texas?
The average cost of a gunite pool is $75,000. The price for the installation of this type of pool can range from $50,000 to $100,000.
What is the cost of installing an inground pool in Martha's vineyard?
The cost of installing an in-ground pool in Martha's Vineyard is around $50,000. The actual cost varies based on the size and type of pool installed.
