The correct option is (c) driver analysis
driver analysis is concerned with identifying the root causes of activity costs.
What is cost driver analysis?
An explanation of the cause-and-effect link between the activity and the cost driver is provided by the process of doing a cost driver analysis of the numerous potential cost drivers for a given type of cost or activity, etc.
What drives the analysis of cost drivers?
Because they deliver an accurate distribution of costs based on activities completed, it gives the business a competitive edge. These are beneficial for a product since they reveal the true cost expended on the goods based on the proper division of the tasks or processes.
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