Which of the Following Problems Arise When Managers Fail to Keep

Multiple Choice

Which of the following problems arise when managers fail to keep accounting records on the accrual basis?

A) The time period for measuring the independent variable does not properly match the period for measuring the cost driver.
B) Costs such as depreciation,insurance,or rent may be allocated to products to calculate cost per unit of output.
C) Marketing costs may be understated because costs of sales visits to customers may be incorrectly recorded as customer-service costs.
D) Extreme values of observations occur.
E) A homogeneous relationship exists when each activity whose costs are included in the dependent variable.