The use of unit-based activity drivers to assign costs tends to
A)overcost low-volume products.
B)overcost high-volume products.
C)undercost all products.
D)overcost all products.

Question

Quizplus · Accepted Answer

Unit-based activity drivers tend to allocate more costs to high-volume products because they assume a direct correlation between the number of units produced and the consumption of resources, which may not accurately reflect the actual consumption of resources by those products.

The Use of Unit-Based Activity Drivers to Assign Costs Tends