DriversHoursCalculatorExcelCloud Solutions from AccountantsWorld offer more effective ways for you to manage your practice, perform your client engagements, and offer new services. Drivers Ed Hidden Message Worksheets Answers. BI3aicR6GiirZULp2hpdV7BwRaF9gJwAkj0uqKz-xp_FD8uew8ypGzild490mlJ=h900' alt='Drivers Hours Calculator Excel' title='Drivers Hours Calculator Excel' />Personal Finance How To Information. Cost Drivers examples Accounting Education. In activity based costing method, to identify cost drivers is very necessary for unit cost and total cost. Before we go to that, we should understand that Section 9 of the CGST Act, 2017 is the charging section, more specifically Section 91. Section 9 is however titled. We know that activity based costing is based on the concept that products consume activities and activities consume resources. From activity pools, we can find cost drivers. Suppose, a company wants to produce several products. At that time, what will company do for calculating per unit cost Just adding of raw material and labor cost and absorbing production overheads on direct labour hours or machine hours is not good way. There will be many activities where we have to spent money. All these activities will become cost drivers. Examples of these cost drivers are given below 1st  No. Purchase Orders. When we have to make any product, we issue the order. This is a simple activity. Its cost can be calculated one the basis of no. So, number of purchase order is an example of cost driver. No. of Set Up of Machine. Setting up the machine is an activity of production. This activity will also consume certain expenses. To know machine set up rate, we need a cost driver. No. of set up will be cost driver. With this, we can calculate set up of machine overhead  rate per set up of the machine for production. No. of Machine Hours. No. of Machine hours is different cost driver which can be used for calculating machine hour rate relating to depreciation, repair and maintenance of machines. No. of Parts or Weight of Material Handled Suppose, a company is making 4 products. These 4 products need 1. We can calculate rate of this overhead on the basis of no. So, number of parts is a cost driver. No. of Test or No. Inspections When any product is made, it is test for checking its quality. Specific experts are appointed for this. Coreldraw X6 64 Bit Crack Free Download'>Coreldraw X6 64 Bit Crack Free Download. They consume money in the form of salary, electricity, travel and other depreciation of their specific equipments. IMAGES/Report.gif' alt='Drivers Hours Calculator Excel' title='Drivers Hours Calculator Excel' />Now, we need to calculate rate of these type of overheads. It can be calculated on the basis of no. Brahma Yamala Tantra Pdf. So, number of test is cost driver. Suppose, we need 5 test per unit of  A product and suppose we have made 1. It means, we need 5. If the accounts of inspection and test departments show the total cost Rs. We can calculate rate of per unit test. Rs. 2. 0 per unit test 6th No. Direct Labour Hours. No. of direct labour hours is that cost driver which can be used for calculating supervising cost per unit. No. of Batches of Material. For calculating, storage cost per batch, we have to make a cost driver that will be no. No. of Machine Operators. No. of machine operators is better cost driver for calculating electricity rate per machine operation. Above are just examples of cost drivers which are used but you can also different cost drivers which may be appropriate for calculating overhead cost of products under ABC method.