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

Question

Quizplus · Accepted Answer

When a company adds a new product line, the cost structure could change significantly, making past cost information unreliable for future cost estimation. The other choices do not necessarily make past cost information unreliable.

Past Cost Information Might Be Too Unreliable for Future Cost