Where management uses a single cost-driver rate to allocate indirect production costs to outputs,___________ cost data are often the result.

Question

Quizplus · Accepted Answer

When management uses a single cost-driver rate to allocate indirect production costs to outputs, the resulting cost data can often be unreliable. This is because indirect production costs are not always proportional to a single cost driver, so using a single cost driver rate may not accurately represent the true amount of indirect costs incurred by each output.

Where Management Uses a Single Cost-Driver Rate to Allocate Indirect