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Kimberly and Matthew met with the supervisor of the pizza division of a medium-sized Italian food supplier. The supervisor explained the two key costs in
Kimberly and Matthew met with the supervisor of the pizza division of a medium-sized Italian food supplier. The supervisor explained the two key costs in his division, as follows. Although Kimberly and Matthew used this data to estimate a model for the division's costs, they each came up with a different model, as follows. Kimberly's cost model Total pizza division cost =$4.80 (number of pizzas) +$4,080 Matthew's cost model Total pizza division cost =$6.40 (number of pizzas) What understanding did Kimberly have about the cost behavior of these costs? MOH cost Pizza cost What understanding did Matthew have about the cost behavior of these two costs? MOH cost Pizza cost Recognizing that these were the only two pieces of data they had, which method of cost estimation did they likely use
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