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An Inaccurate Cost Function with a Constant That Is Estimated

Question 133

Multiple Choice

An inaccurate cost function with a constant that is estimated too high may most likely result in ________.


A) evaluating a weak manager as providing strong performance
B) promoting a product that is actually less profitable than budgeted
C) predicting total costs that are too low
D) replicating processes that are truly cost saving

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