What Is Cost Drivers [2026 Release]

What Are Cost Drivers? A Guide to Understanding Business Expenses

Cost drivers are the activities, processes, or events that trigger costs to be incurred. They can be broadly classified into two categories: structural cost drivers and executional cost drivers. Structural cost drivers are related to the organization's structure, such as its size, complexity, and technology. Executional cost drivers, on the other hand, are related to the way the organization operates, such as the efficiency of its processes and the skills of its employees. what is cost drivers

Relate to a company's strategic choices, such as location, scale of operations, or the technologies used. What Are Cost Drivers