The percentage of the total cost driver that is attributable to each product line is called a(n):

• A. allocation rate
• B. marginal cost share
• C. usage proportion
• D. cost driver rate

Answer: (C)

Verified step by step guidance

1. Understand the concept of a cost driver: it is a factor that causes or relates to the incurrence of costs in a production process.
2. Recognize that the problem asks for the term describing the percentage of the total cost driver attributable to each product line.
3. Recall that 'allocation rate' refers to the rate at which costs are assigned based on the cost driver, not the percentage share.
4. Note that 'marginal cost share' relates to the additional cost from producing one more unit, which is different from the percentage of the cost driver.
5. Identify that 'usage proportion' correctly describes the percentage of the total cost driver used by each product line, representing their share of the cost driver.