Managerial accountants believe that one component of an ideal database contains:
A)incorrect cost classifications.
B)misplaced decimal points in the data.
C)fixed costs allocated as if they were variable costs.
D)extreme values not used to calculate the cost functions.
E)accurate measurements of independent variables and dependent variables.

Question

Quizplus · Accepted Answer

Managerial accountants require accurate measurements of both independent and dependent variables to create reliable cost functions. A database that contains accurate measurements of these variables will provide managers with valuable information for decision-making purposes. Options A, B, C, and D are all examples of errors in cost data, which can result in incorrect calculations and decisions. Therefore, E is the most appropriate choice for an ideal database component.

Managerial Accountants Believe That One Component of an Ideal Database