) Agree as in the past, the companies with limited technology tend to produce limited range of products which often require similar resources. Therefore, using the unit-level drivers such as direct labor hour or machine hours seem to be appropriate in the past as the proportion used to produce the products are about the same. It will not cause distorted costing if the products being produced all consume the overhead in the same proportion as unit level driven overhead costs. Due to advancement in technology and innovation, total product cost is no longer mainly made up of direct labor hours or machine hours as many high technologies like the automatic equipment begin to replace the labor and outdated machines. Besides, the new product creation which differs in size and complexity often requires different resources. Managing the product diversity adds more overhead resources like engineering hours, inspecting hours and setup time that had no obvious connection to those aforementioned traditional driver tracing factors. Nowadays, the continuous adoption of the traditional overhead cost pools by the companies with product diversity will face the risk of product cost distortion. Therefore, it is obvious that the overhead costs can cause the distortion in product cost.?