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LO 6.2What conditions are necessary to designate an activity as a cost driver?

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Answer:

if an activity increases the over head, we can safely associate such activity as a cost driver.

Step-by-step explanation:

As the cost drivers increases, the business over head cost also increases, examples of cost driving activity, are number of hires on receiving wages/ salaries, amount of financials invested in marketing company product or service.

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