Data collection problems arise when ________.
A) data are recorded electronically rather than manually
B) accrual-basis costs are used rather than cash-basis costs
C) fixed and variable costs are not separately identified and both are allocated to products on a per unit basis
D) purely inflationary price effects are removed

Question

Quizplus · Accepted Answer

If fixed and variable costs are not separately identified and both are allocated to products on a per-unit basis, it can lead to incorrect product costing, which can result in inefficient decision-making. Data being recorded electronically or using accrual-basis costs does not necessarily create data collection problems. Purely inflationary price effects being removed is actually a good practice in order to obtain accurate data.

Data Collection Problems Arise When ________