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:

Learned Behavior

Actions or reactions that individuals acquire through experience or by observing others, in contrast to innate behaviors.

Mammals

The class of vertebrate animals distinguished by bodies covered with hair or fur, self-regulating temperature, and in females, milk-producing mammary glands.

Reptiles

are a class of ectothermic, scaled vertebrates that include snakes, lizards, turtles, and crocodilians, distinct for their ability to lay eggs on land.

Dynamic

Pertaining to the forces or processes that stimulate growth or change within a system or process.