Q2 The following data were obtained from the accounting information system of Attawfik Corporation:

Units Total Cost

Month Produced

January 60 SAR1,533.4

February 50 1,300

March 80 2,000

April 30 833.5

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

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

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

(1 Mark)