When do unit-level cost drivers create distortions?
A)when products use resources similarly
B)when products are produced using resources homogeneously
C)when different products consume resources differently
D)when different products consume resources at the same rate

Question

Quizplus · Accepted Answer

Unit-level cost drivers create distortions when different products consume resources differently. This is because unit-level cost drivers assume that all products consume resources at the same rate, leading to inaccurate cost allocations when products actually use resources at different rates.

When Do Unit-Level Cost Drivers Create Distortions