Question: In not more than 150 words, explain how activity-based costing system will be able to address the following problem of the traditional costing system? Unit-level

In not more than 150 words, explain how activity-based costing system will be able to address the following problem of the traditional costing system? Unit-level drivers in traditional costing system distort product costs because, effectively, these drivers assume that all indirect activities affect all products in the same proportion. Thus, these drivers assign each unit of product an average cost that fails to recognize the specific activities that are required to produce that product.

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