Unit-level cost drivers create distortions when
A)different products consume resources differently.
B)products are produced using resources homogeneously.
C)products use resources similarly.
D)all of the above.

Question

Quizplus · Accepted Answer

Unit-level cost drivers can create distortions when different products consume resources differently because they assume a direct correlation between the driver and the consumption of resources, which may not accurately reflect the actual resource usage for each product.

Unit-Level Cost Drivers Create Distortions When