Identify and describe an example of interdependent variances

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Reference no: EM13990680

DQ 1

A coworker comes to you with the following problem: "I provided my boss a projection of factory overhead using the high-low method. He was unhappy with the results and told me to do more work and not return until I had a lower cost estimate. My initial analysis was based on data points for the last 24 months. By dropping the three highest data points, I was able to get a lower cost." Was what your coworker did unethical? Explain.

DQ 2

The differences identified in variance analysis are often interdependent. A favorable variance in one category may lead to an unfavorable variance in another, and vice versa. Identify and describe an example of interdependent variances, and discuss the trade-off that exists.

Reference no: EM13990680

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