All of the following are cost analysis problems EXCEPT:
A)fixed costs are allocated as if they are variable costs
B)extreme observations are adjusted or removed
C)time periods differ for measuring items included in the dependent variable and the cost driver(s)
D)homogeneous relationships between individual cost items in the dependent variable pool and cost drivers may not be present

Question

Quizplus · Accepted Answer

Extreme observations being adjusted or removed is not a cost analysis problem, but rather a data cleaning or statistical analysis problem. The other three options listed are common cost analysis problems that can affect the accuracy of cost estimates.

All of the Following Are Cost Analysis Problems EXCEPT