What Would Contribute to Distortions Caused by Unit Level Rates

question 8

Multiple Choice

What would contribute to distortions caused by unit level rates?

• A)Assign costs by multiplying activity rates by the amount of activity consumed.
• B)Calculate individual rates for each activity with activity drivers.
• C)Increase the number of rates used that reflect the diverse activity and non-unit overhead drivers.
• D)Have one unit level of cost drivers.

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