If a motorcycle manufacturer changes from skilled labor to computer-controlled assembly procedures, the past data
A) are of little or no value in predicting future costs.
B) are useful in predicting future costs.
C) are representative of future costs.
D) should be used without adjustments to predict future costs.

Question

Quizplus · Accepted Answer

When a motorcycle manufacturer changes from skilled labor to computer-controlled assembly procedures, it is likely to bring significant changes in the production process, which can affect costs. As a result, past data cannot be accurately used to predict future costs, and adjustments need to be made to account for the differences in the production process. Hence, option A is the correct choice.

If a Motorcycle Manufacturer Changes from Skilled Labor to Computer-Controlled