T-Town Hockey is back in action at the Huntington Center on Saturday, November 7, when the Toledo Walleye take on Adirondack. The puck drops at 7:15 p.m., but youâll want to arrive early for the Opening Night Craft Beer Bash, taking place from 5-7 p.m. in the Aquarium.
Activity Cost Driver is measure of frequency and intensity of demand placed on activities by cost object. It is used to assign activity costs to cost objects. To carry out a value chain analysis, ABC is a necessary tool. To carry out ABC, it is necessary that cost drivers are established for different cost pools.
Two common costing systems used in business are traditional costing and activity-based costing. Traditional costing assigns manufacturing overhead based on the volume of a cost driver, such as the amount of direct labor hours needed to produce an item. A cost driver is a factor that causes cost to incur, such as machine hours, direct labor hours and direct material hours.