When Can Product Costs Be Distorted If a Unit-Based Activity

question 36

Multiple Choice

When can product costs be distorted if a unit-based activity driver is used?

• A)when non-unit-based overhead costs are an insignificant proportion of total overhead
• B)when the consumption ratios differ between unit-based and non-unit-based input categories
• C)when the amount of overhead that each product consumes is insignificant
• D)when the degree of product diversity produced is small

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Definitions:

Emotions

Intricate mental conditions that encompass a trio of distinct elements: an individual's personal experience, a physical reaction, and an action or demonstrative response.

Automatic

Referring to processes or behaviors that occur spontaneously, without conscious thought or intention.

Satiety Signals

Internal chemical signals, such as those from hormones, that indicate fullness and reduce the desire to eat.

Pancreas

An organ in the abdominal cavity that plays a role in both digestion and regulation of blood sugar through the secretion of digestive enzymes and insulin.