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What Would Contribute to Distortions Caused by Unit Level Rates

Question 8

Multiple Choice

What would contribute to distortions caused by unit level rates?


A) Assign costs by multiplying activity rates by the amount of activity consumed.
B) Calculate individual rates for each activity with activity drivers.
C) Increase the number of rates used that reflect the diverse activity and non-unit overhead drivers.
D) Have one unit level of cost drivers.

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