Changes in technology during the period of cost observations should not be a concern in estimating cost.

Question

Quizplus · Accepted Answer

Unless all cost observations were collected under the same conditions regarding the technology employed, the estimation equation is likely to be inaccurate in estimating future costs. For the best results, all cost observations should be collected under conditions that are as uniform as possible, except for the level of operations.

Changes in Technology During the Period of Cost Observations Should