A Company Is Comparing the Cost of Two Products Determined

question 124

Multiple Choice

A company is comparing the cost of two products determined under a traditional costing system and an activity-based costing system.Let's assume the production process is very lengthy and complicated for both products.The following information is obtained: Based on these computations,what can you conclude?

• A)Both costing systems provide accurate measures of cost per unit for each product.
• B)Benchmarking should be used.
• C)The activity-based costing system is probably more accurate than the other system.
• D)The traditional costing system is probably more accurate than the other system.

Understand the effect of outliers on statistical measurements.

Differentiate between the types of data distributions, including symmetrical, bimodal, and skewed distributions.

Calculate and interpret range and its implications on data spread.

Understand the rationale behind discarding outliers in certain analytical methods.