Which of the Following Problems Arise When Managers Fail to Keep

question 71

Multiple Choice

Which of the following problems arise when managers fail to keep accounting records on the accrual basis?

• A)The time period for measuring the independent variable does not properly match the period for measuring the cost driver.
• B)Costs such as depreciation,insurance,or rent may be allocated to products to calculate cost per unit of output.
• C)Marketing costs may be understated because costs of sales visits to customers may be incorrectly recorded as customer-service costs.
• D)Extreme values of observations occur.
• E)A homogeneous relationship exists when each activity whose costs are included in the dependent variable.

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Definitions:

Communication

The exchange of information, ideas, feelings, and messages between individuals or groups, often aimed at achieving understanding or effecting change.

Working Relationships

The interaction dynamics between colleagues within a professional environment.

Task Environment

The immediate external elements that affect an organization's performance, including competitors, customers, and suppliers.

Professional Bureaucracy

A type of organizational structure that is heavily reliant on the expertise and knowledge of professionals within the organization.