Unit cost data can most mislead decisions by ________.
A) not computing fixed overhead costs
B) computing labor and materials costs only
C) computing administrative costs
D) not computing unit costs at the same output level

Question

Quizplus · Accepted Answer

Not computing unit costs at the same output level can mislead decisions because it doesn't take into account economies of scale. Unit costs may be lower at a higher output level, which could lead to different decisions being made based on misleading data.

Unit Cost Data Can Most Mislead Decisions by ________