Data collection problems arise when:
A)accrual-basis costs are used rather than cash-basis costs.
B)fixed and variable costs are not separately identified and both are allocated to products on a per unit basis.
C)data are recorded electronically rather than manually.
D)purely inflationary price effects are removed.

Question

Quizplus · Accepted Answer

Allocating fixed and variable costs on a per unit basis can distort product costs and lead to inaccurate pricing decisions. It is important to separate and identify fixed and variable costs in order to allocate them properly and accurately determine product costs. The other options listed do not necessarily lead to data collection problems.

Data Collection Problems Arise When