Reference no: EM132628990

Problem 1: In a manufacturing context explain how product cost can be classified as an asset and then as an expense. what are underlying principles behind this accounting treatment?

Problem 2: plasma pathology has injured the following costs in its diagnostic blood laboratory during the past 12 month January to December.

month	number of test completed	cost
January	6100	90 000
February	5300	87000
march	4900	76 200
April	4800	78 100
may	5050	80 700
June	3050	61 000
July	4500	74 500
August	7100	99 000
September	6200	95 600
October	4700	74 800
November	5900	89 000
December	6000	91 000

Required

Question 1: Use interpreting regression analysis to estimate the variable cost per blood test and the fixed cost per month.

Question 2: Develop a formula to express the cost behavior exhibited by plasm pathology's cost

Question 3: Predict the total cost in a month when 5500 test are performed