Do fixed costs have cost drivers?
Also question is, what is an example of a cost driver?
Examples of cost drivers are as follows: Direct labor hours worked. Number of customer contacts. Number of engineering change orders issued. Number of machine hours used.
Herein, what is a cost driver rate?
A cost driver rate is the amount of indirect or variable cost assigned to each unit of cost driver activity. For example, you may apply indirect overhead to direct labor hours as $50 dollars per hour.
Fixed costs do not change based on activity. The cost will stay the same in total as long as activity is within the relevant range. Because fixed costs are fixed in total, the per unit rate will change as production changes.