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Unit-level cost drivers are most appropriate as an overhead assignment base when:
Financial Leverage
The use of borrowed funds to enhance the potential return of an investment.
Total Liabilities
The sum of all financial obligations or debts that a company owes to outside parties at a given point in time.
Total Assets
The sum of all assets owned by a company, including current, fixed, tangible, and intangible assets, represented on the balance sheet.
Total Equity
Total equity represents the value left for shareholders after all liabilities have been subtracted from the total assets of a company.
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