Among the problems encountered when time series analysis is used to estimate cost functions is
A)that technological changes may have occurred.
B)that accounting changes may have occurred during the period analyzed.
C)that some costs are recorded on the books of account at a time other than when they are incurred.
D)All of the above

Question

Quizplus · Accepted Answer

All of the above are problems encountered when using time series analysis to estimate cost functions. Technological changes and accounting changes can affect the cost structure over time, and costs recorded on the books at a different time than when they are incurred can result in inaccurate cost estimates.

Among the Problems Encountered When Time Series Analysis Is Used