How cost function may provide poor estimates of future cost

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The following data were obtained from the accounting information system of Attawfik Corporation:

Month Produced          Units          Total Cost

January                      60            SAR1,533.4
February                     50               1,300
March                    80                     2,000
April                         30                  833.5

Problem a. Use the data for February and March and the two - point method to determine a cost function.

Problem b. Use the high - low method to determine a cost function.

Problem C. How do you think that a cost function may provide poor estimates of future costs?

Reference no: EM132666108

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