Which of the following are valid reasons for a firm not using objective techniques?
i.Data may not be available
ii.Cost estimates are sufficiently accurate for the firm's purposes.
iii.Accountants may be ignorant of appropriate techniques.iv.The firm gives low priority to cost estimation.
A) i and ii
B) i,ii and iii
C) ii,iii and iv
D) i,ii and iv

Question

Quizplus · Accepted Answer

The options ii and iv suggest that a firm may not use objective techniques if it has accurate cost estimates or if cost estimation is given low priority. These are valid reasons for not using objective techniques. Option i suggests that a lack of data may prevent the use of objective techniques, which is also a valid reason. Option iii suggests that accountants may be ignorant of appropriate techniques, which is not a valid reason as ignorance can be resolved through training and education. Thus, the valid reasons for not using objective techniques are i, ii, and iv. Therefore, the correct answer is option D.

Which of the Following Are Valid Reasons for a Firm