Cost Driver May 2026

If you don’t know what your cost drivers are, you aren’t managing your business. You’re just reacting to it.

Traditional budgets just add 5% to last year’s numbers. Driver-based budgeting asks: “If we increase sales by 20%, how many more customer service calls will that generate?” You can now predict costs before they happen. cost driver

When you stop staring at the expense report and start staring at the activity that creates the expense, you stop being a victim of your costs. You become the manager of them. If you don’t know what your cost drivers