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Deliveries Movements Production runs Quality tests Activity Volume 670 315 720 470 Cost per activity unit =11.5k/670 = 17 =5k/315 = 16 =12k/720 = 17

Deliveries Movements Production runs Quality tests
Activity Volume 670 315 720 470
Cost per activity unit

=11.5k/670

= 17

=5k/315

= 16

=12k/720

= 17

=8k/470

= 17

Why would an activity based budget not be suitable based on the above cost per activity unit?

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