Unit costs can be significantly different when using activity-based costing compared to traditional cost allocation methods.

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Peyton mauldin · Accepted Answer

Final Answer : True, Explanation :  Activity-based costing is a more accurate method of allocating costs as it considers the specific activities that cause the cost, whereas traditional cost allocation methods may allocate costs based on broad categories or assumptions. This can lead to significantly different unit costs when using activity-based costing compared to traditional methods.

Unit costs can be significantly different when using activity-based costing compared to traditional cost allocation methods.

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