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

question 111

Multiple Choice

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.

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Definitions:

Carbon Atom

A chemical element with symbol C and atomic number 6, fundamental to all known life, able to form stable bonds with many elements including itself.

Organic Molecules

Chemical compounds composed primarily of carbon atoms in rings or long chains, to which are attached other atoms such as hydrogen, oxygen, and nitrogen.

Carbon

A chemical element with symbol C, essential to all life, serving as the basic building block for all organic molecules.

Hydrogen

The lightest and most abundant chemical element in the universe, consisting of just one proton and often one electron.