Past Cost Information Might Be Too Unreliable for Future Cost

question 48

Multiple Choice

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

• A) An organization 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:

Competitive

Being inclined to compete or striving to win or be more successful than others.

Psychophysiological Disorders

Physical illnesses that are thought to be caused or exacerbated by mental factors such as stress and anxiety.

Social Conditions

Refers to the societal factors and circumstances that influence individuals' lifestyles, behaviors, and attitudes.

Poverty

A state of economic deprivation, lacking sufficient income to meet basic needs such as food, shelter, and clothing.