cost driver

USAGE SUMMARY

The phrase "cost driver" is correct and usable in written English.
It is typically used in business and accounting contexts to refer to a factor that causes changes in the cost of an activity or product. Example: "In our analysis, we identified labor hours as the primary cost driver for the project."

✓ Grammatically correct

Science

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

But malpractice claims are probably not a major cost driver.

The New York Times

But the main cost driver is the fee-for-service payment system.

The New York Times

The stabilization requirements of pipelines are a major cost driver on subsea pipeline projects.

Subsea Pipeline Design, Analysis, and Installation

The key cost driver for hemodialysers is the cost of the hemodialysis membrane.

Journal of Manufacturing Processes

In particular, equipment replacement cost was identified as an important cost driver.

Annals of Nuclear Energy

Moreover, the key cost driver was manifested as the operating and maintenance costs.

Annals of Nuclear Energy

The primary cost driver categories explored are design and development, part fabrication, assembly and in-service costs.

University of California, Berkeley

Medication costs were by far the most important cost driver.

Health Economics Review

What is the cost driver breakdown of my product?

Forbes

Treatment costs in both high and low incidence districts formed the highest cost driver for households.

Health Economics Review

As with BSC, the main cost driver of the LDC arm was transfusions (Figure 4).

Health Economics Review

Expert writing Tips

Best practice

When analyzing business finances, clearly identify and quantify each "cost driver" to understand its specific impact on overall profitability. Focus on the most impactful drivers and explore ways to mitigate them to improve financial performance.

Common error

Don't focus solely on direct costs; consider indirect factors like inefficient processes or poor communication, which can also significantly drive up expenses. Addressing these hidden "cost drivers" can lead to substantial savings.

Linguistic Context

The phrase "cost driver" functions as a noun phrase, typically identifying a factor that significantly influences or determines the cost of a product, service, or activity. Ludwig AI confirms that this term is usable in written English.

Expression frequency: Very common

Frequent in

Science

53%

News & Media

22%

Formal & Business

25%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "cost driver" is a common and grammatically correct term used to identify factors that significantly influence the cost of a product, service, or activity. According to Ludwig AI, it's widely accepted and usable in written English. Examples from Ludwig demonstrate its prevalence in scientific, news media, and formal business contexts. Related phrases include "expense factor" and "key cost component". When using this phrase, it's important to clearly quantify its impact and also consider indirect factors that may contribute to costs. The main contexts where "cost driver" is used are scientific, news & media and formal & business. The expert rating for this term is high due to its grammatical correctness and authoritative sourcing.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

expense factor

Focuses on the elements determining the amount spent, emphasizing the cause-and-effect relationship to expenditure.

key cost component

Highlights the substantial parts of overall expenditure, specifying its role within financial elements.

major expense source

Identifies where considerable expenses originate, stressing the origin of significant financial burden.

primary cost influencer

Indicates something that has strong effects on expenses, denoting its effectiveness in shaping costs.

main cost determinant

Emphasizes its key role in establishing expenses, underlining its decisive role in creating costs.

significant cost factor

Points to notable elements affecting expenditure, emphasizing its importance in financial considerations.

leading cost contributor

Highlights its contribution to the larger expenses, putting emphasis on its influence on total costs.

principal cost element

Highlights its position as a chief part of overall expenses, noting its central importance.

critical cost variable

Focuses on key factors that may cause changes in costs, stressing the unstable condition of its impact.

cost driver breakdown

Refers to a thorough categorization of contributing factors to cost, emphasizing the detailed division of costs.

FAQs

How to use "cost driver" in a sentence?

You can use "cost driver" to identify the factor that causes costs to increase. For example, "The primary "cost driver" for the project was the rising price of raw materials."

What is the difference between "cost driver" and "cost factor"?

While both terms relate to costs, "cost driver" specifically implies a causal relationship—it directly drives or influences costs. "Cost factor" is a broader term that can refer to any element affecting costs, not necessarily a direct cause.

What can I say instead of "cost driver"?

You can use alternatives like "expense factor", "key cost component", or "significant cost factor" depending on the context.

Is "cost driver" a term only used in business?

"Cost driver" is frequently used in business and economics, it is also applied in other fields like healthcare, engineering, and environmental studies to identify the main factors contributing to expenses in those areas.