All of the following are cost analysis problems EXCEPT:
A)fixed costs are allocated as if they are variable costs.
B)time periods differ for measuring items included in the dependent variable and the cost driver(s).
C)homogeneous relationships between individual cost items in the dependent variable pool and cost drivers may not be present.
D)extreme observations are adjusted or removed.

Question

Quizplus · Accepted Answer

Extreme observations being adjusted or removed is not a cost analysis problem; it's a data cleaning or preprocessing step often necessary in various types of analysis to ensure accuracy and reliability of the results. The other options (A, B, C) describe common issues encountered in cost analysis, such as incorrect cost allocation, mismatched time periods, and non-homogeneous relationships affecting the analysis.

All of the Following Are Cost Analysis Problems EXCEPT