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A factor that causes the cost of an activity to go up or down is a(n):

A. Direct factor.

B. Indirect factor.

C. Cost driver.

D. Product cost.

E. Contribution factor.

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Answer:

A factor that causes the cost of an activity to go up and down is known as cost driver.

Explanation:

Cost driver is a factor that brings about change in cost. cost driver relates to Activity-based costing. it is the factor responsible for change in cost.

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