Chapter 10 Learning Objectives 1. Describe linear cost mctions and three common ways in which they behave. a. What is a linear cost function? b. What are the three common behavior patterns? {3. How does the choice of cost object inuence the behavior pattern? d. How does time horizon inuence behavior pattern? 6. How does relevant range inuence behavior pattern? 2. Explain the importance of causality in estimating cost functions. a. What are three common cause and effect relationships? b. Why is causality important? 3. Understand various methods of cost estimation. a. What are the four types of cost measurement and what are the pro's and con's of each? 4. Outline six steps in estimating a cost function using quantitative analysis. a. The six steps and the purpose and method of each are b. What is the high-low method? i. How is it calculated? c. What is regression analysis? i. How is it different than high-low? ii. Is it better or worse? iii. How do you calculate it? iv. How do you read the regression report from Excel