What Can Be Caused by Using Only Unit-Based Activity Drivers

question 151

Multiple Choice

What can be caused by using only unit-based activity drivers to assign non-unit-related overhead costs?

• A)product diversity
• B)distorted product costs
• C)efficiency
• D)activity sharing

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Definitions:

Interval Responses

Responses or data that range within a specific interval, often used in surveys or statistical analysis to understand distribution or preference.

Interval Data

Refers to a type of numerical data that has meaningful distances between measurements but no true zero point, allowing for addition and subtraction operations but not true ratio comparisons.

Bar Chart

A graphical display that uses bars of different heights or lengths to represent data values of various categories for comparison.

Nominal Variable

A type of categorical variable with distinct categories that do not have a specific order or ranking.