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(Solution) - Estimating a cost function The controller of the Ijiri Company

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Estimating a cost function The controller of the Ijiri Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance:


Required
1. Estimate the cost function for maintenance.
2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain.

 







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This question was answered on: Jul 11, 2017

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