Using only unit-based activity drivers to assign nonunit-related overhead costs can cause
A)product diversity.
B)distorted product costs.
C)efficiency.
D)activity sharing.
E)none of these

Question

Quizplus · Accepted Answer

Using only unit-based activity drivers to assign nonunit-related overhead costs can cause distorted product costs because not all products or activities require the same level of overhead costs, and using a single unit-based driver may not accurately allocate these costs.

Using Only Unit-Based Activity Drivers to Assign Nonunit-Related Overhead Costs