Cost Driver Analysis Example Online

Should they keep making Product B? Maybe. But now they have the data to make an informed choice. If customers aren't willing to pay the higher price required to cover the "batching" costs, TechBoard might decide to discontinue the custom line to focus on the more profitable standard line.

Additionally, not all costs are strictly variable with respect to drivers; some fixed costs (e.g., factory rent) may require a different treatment. cost driver analysis example