Costs of Capital

Capital is the amount of money invested into the project or business. It is located in the equity section of the balance sheet. The costs of capital is the amount the bank or investor desires or charges for the use of the money.

Cost Drivers in Small Business

Cost Drivers in Business

The textbook answer defines cost drivers as those factors that determine the overall cost of operations.  As an example, in manufacturing the cost drivers may be processing time or number of steps to produce the product.  In service, the cost drivers could be the actual ratio of billable to non-billable time.

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