Past cost information might be too unreliable for future cost estimation because:
A) The organisations operations have changed considerably
B) The organisation's accounting system does not currently capture the necessary information
C) The costs are primarily mixed
D) Both a and b

Question

Quizplus · Accepted Answer

Past cost information may become unreliable for future cost estimation if the organization's operations have significantly changed or if the current accounting system does not capture the necessary information. Both of these factors can lead to inaccuracies in forecasting future costs.

Past Cost Information Might Be Too Unreliable for Future Cost