Past Cost Information Might Be Too Unreliable for Future Cost

question 1

Multiple Choice

Past cost information might be too unreliable for future cost estimation because

• A) An organisation has been operating too long in a stable environment
• B) The costs are primarily mixed
• C) A company has added a new product line
• D) Managers expect no changes in the cost function

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Definitions:

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Cooperation

Working together toward a common goal or benefit.

Trust

The confidence in the honesty, integrity, and reliability of a person or system.

Commons Dilemma

A situation in which individuals' short-term self-interest conflicts with long-term group interest and well-being, often related to the consumption of shared resources.