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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The total quantity of agricultural products produced, including crops and livestock.

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