Activity Based Costing (ABC) and Costs Proportional with Output Volume (CVO) need to meet specific conditions to accurately measure economic costs. These conditions involve detailed exploration of technology and require a perfect input market and linear cost drivers. If these conditions are not met, decision-making processes like pricing and cost management may be misled. The technology used must not have cost complementarities or non-complementarities, and input mixes in cost pools must remain fixed and invariant with volume. Failure to meet these conditions can lead to distorted accounting numbers.