💡 Not all costs are driven by volume. Some, like research and development, are driven by time or the number of projects.
The time employees spend on a task directly impacts payroll and overhead. what are the cost drivers
| Industry | Typical Cost Drivers | |----------|----------------------| | Manufacturing | Machine hours, units, setups | | Software / SaaS | Users, server calls, support tickets | | Healthcare | Patient visits, procedures, lab tests | | Retail | Foot traffic, transactions, square footage | | Consulting | Billable hours, travel days, proposals | 💡 Not all costs are driven by volume
These costs relate to a specific product line rather than individual units or batches. like research and development
✅ Focus on the 20% of drivers that cause 80% of your cost variability (Pareto principle).