An inaccurate cost function with a slope coefficient that is estimated too low may most likely result in ________.
A) predicting total costs that are too high
B) initiating cost cutting measures when they are unnecessary
C) evaluating a weak manager as having strong performance
D) promoting a product that is actually more profitable than budgeted

Question

Quizplus · Accepted Answer

An inaccurate cost function with a slope coefficient that is estimated too low may most likely result in initiating cost cutting measures when they are unnecessary. This is because the cost function will predict that costs will be lower than they actually are, leading to the conclusion that costs need to be cut.

An Inaccurate Cost Function with a Slope Coefficient That Is