Which of the Following Is a Possible Limitation in Cost

question 3

Multiple Choice

Which of the following is a possible limitation in cost estimation?

• A)It is difficult to obtain data on relevant costs from accounting reports that record historical data.
• B)It is difficult to get qualified people who can obtain data on costs and can interpret the data.
• C)Critics argue that the method used for estimating cost is outdated and does not provide accurate cost estimates.
• D)Critics argue that cost estimates do not help managers make efficient decisions.

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Definitions:

Individuals

Persons or entities regarded as single and distinct from a group, often considered in terms of legal rights, responsibilities, and social roles.

Edgeworth Box

A diagram used in economics to show the distribution of resources and the potential for gains from trade between two individuals or entities.

Efficient Allocation

An optimal distribution of resources where it is impossible to make someone better off without making someone else worse off.

Goods

Tangible products or commodities that can be bought, sold, or traded to satisfy wants or needs.