Smaller cost distortions occur when the traditional cost systems' unit-level assignments and the alternative activity cost driver assignments:
A)are different in proportion to each other.
B)are similar in proportion to each other.
C)are more different than alike.
D)use the same cost driver units.

Question

Quizplus · Accepted Answer

Smaller cost distortions occur when the traditional cost systems' unit-level assignments and the alternative activity cost driver assignments are similar in proportion to each other. This means that the two methods of assigning costs are not drastically different from each other, resulting in smaller distortions in the cost calculations.

Smaller Cost Distortions Occur When the Traditional Cost Systems' Unit-Level