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    Immrtal1's Avatar
    Immrtal1 Posts: 3, Reputation: 1
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    #1

    Apr 7, 2007, 02:43 PM
    How are cost drivers selected in activity-based costing systems?
    As stated: How are cost drivers selected in activity-based costing systems?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 7, 2007, 11:47 PM
    They can be selected in many different ways.

    One tends to select them based on some criteria that makes the most sense.

    You want some sort of correlation between the activity base and the cost stuff.

    For example, If I manufacture shirts by sewing them, I should probably use direct labour hours and not material as my cost driver.
    Immrtal1's Avatar
    Immrtal1 Posts: 3, Reputation: 1
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    #3

    Apr 8, 2007, 06:44 AM
    Thanks for your help in both questions!
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