Cost data that are classiﬁed and recorded in a particular way for one purpose may be inappropriate for another use.For example, which of the following costs would not be a reasonable measure of a plant manager's performance?
A)net income compared to other plants.
B)comparison of current period performance costs to planned performance costs of the plant.
C)the increase or decrease in depreciation costs for the plant and its equipment.
D)penalty costs during each period for orders not completed on time by the plant.
E)bonuses earned by plant workers for on-time production.

Question

Quizplus · Accepted Answer

Depreciation costs are non-cash expenses and do not reflect the plant manager's performance.

Cost Data That Are Classiﬁed and Recorded in a Particular