Some data-recording method(s)could lead the analyst astray because they can make the data appear to exhibit incorrect cost behavior patterns;for example,
A)"unitizing" fixed costs.
B)firms sometimes do maintenance only when activity is slow.
C)firms peg advertising expenditures as a percentage of actual sales.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

All of the given options can potentially lead the analyst astray by causing incorrect cost behavior patterns. "Unitizing" fixed costs can make them appear variable, while only doing maintenance during slow periods can create a false correlation between maintenance costs and activity level. Pegging advertising expenditures as a percentage of actual sales assumes a direct relationship between the two variables, which may not always hold true.

Some Data-Recording Method(s)could Lead the Analyst Astray Because They Can