Cost Driver Definition: Cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs. Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download
cost driver is any factor which causes a change in the cost of an activity. A cost driver is the unit of an activity that causes the change in activity’s cost.so this is called Cost Driver is the factor because of it changes occur in any activity.