What can be caused by using only unit-based activity drivers to assign non-unit-related overhead costs?
A)product diversity
B)distorted product costs
C)efficiency
D)activity sharing

Question

Quizplus · Accepted Answer

Using only unit-based activity drivers to assign non-unit-related overhead costs can lead to distorted product costs, as these costs may not be related to the volume of units produced. This can result in inaccurate pricing decisions and potentially negative impacts on profitability. Product diversity, efficiency, and activity sharing may or may not be affected by the use of unit-based activity drivers for assigning non-unit-related overhead costs.

What Can Be Caused by Using Only Unit-Based Activity Drivers