Most organisations use a year, rather than a week or a month, as the period over which to calculate budgeted cost-driver rates. This is because for the reason, the longer the time longer the time period, the the effect of variations in output levels on the allocation of fixed costs. [j-costing may result in overpricing and competitors entering a market and taking market share for products that a company erroneously believes are lowmargin or even unprofitable. [j-costing may result in companies selling products on which they are in fact losing monev. when thev erroneouslv believe them to be