Which of the Following Problems Arise When Costs of Depreciation,insurance,or

Multiple Choice

Which of the following problems arise when costs of depreciation,insurance,or rent are allocated to products to calculate the cost of each unit of output?

A) Fixed costs are erroneously allocated as variable costs.
B) The measured observations of cost driver are reliable.
C) The measured observations of related costs are reliable.
D) The estimates of the cost driver are more accurate compared to costs.
E) The cost drivers are accurate because they are all grouped together.