Final answer:
A cost driver is an activity that triggers a change in the cost of related activities, affecting the use of resources such as labor and materials which are essential to produce goods and services. The correct option is c.
Step-by-step explanation:
In the context of business and accounting, a cost driver is an activity or event that triggers a change in the cost of a related activity. Resources such as labor, materials, and machinery, which are inputs used to produce goods and services, are all affected by cost drivers. For instance, an increase in production volume typically requires more labor and materials, which in turn drives up costs.
It's important to distinguish between this and other options provided in the question. For example, a just-in-time activity is a production strategy aimed at reducing in-process inventory and associated carrying costs, a facility-level activity is related to maintaining the production facility itself, and a non-value-added activity is something that doesn't add to the customer's value perception of a product or service. Each of these has distinct implications on cost consumption and management.
Understanding cost drivers is essential for managing expenses and making informed strategic decisions that contribute to the sustainability and success of a business, especially considering the finite nature of resources.
Hence, Option c is correct.