Which One of the Following Statements About Difficulties in Cost

Multiple Choice

Which one of the following statements about difficulties in cost estimation is true?

A) Changes in the company's production technology make estimating the company's production costs easier
B) The shorter the time period, the higher the probability of inappropriately matching activity and cost
C) The stronger the economy, the harder it is to accurately match activity and cost
D) When prices of a company's raw materials or labor are rapidly increasing, cost estimations based on previous periods will overestimate future costs