Reentering Data Because of Keypunch Errors
Reentering data because of keypunch errors
The ideal database for estimating cost functions quantitatively includes values for the independent variable over a wide range.
Data collection problems arise when A)data are recorded electronically rather than manually. B)accrual-basis costs are used rather than cash-basis costs. C)outliers are removed. D)purely inflationary price effects are removed. E)fixed and variable costs are not separately identified and both are allocated to products on a per unit basis.
A better database for estimating cost functions has the following characteristics. A)Fixed costs are allocated as if they are variable costs. B)Extreme observations are adjusted or removed. C)Time periods differ for measuring items included in the dependent variable and the cost driver(s). D)Homogeneous relationships between individual cost items in the dependent variable pool and cost drivers may not be present. E)There is no causal, economically plausible relationship between individual cost items in a heterogeneous mixed pool and a single cost driver.