Question: Data table cost function for delivery costs. Information The cont function in recuirement 1 is an estimate of how costs behave the relovant ranoe. not

 Data table cost function for delivery costs. Information The cont function
in recuirement 1 is an estimate of how costs behave the relovant
ranoe. not at cost levels the The controller of the Twig Company

Data table cost function for delivery costs. Information The cont function in recuirement 1 is an estimate of how costs behave the relovant ranoe. not at cost levels the The controller of the Twig Company is preparing the budget for 2021 and needs to estimate a cost function for delivery costs. Information regarding delivery costs incurred in the prior 2 months are: (Click the icon to view the information.) Requirements 1. Estimate the cost function for delivery. 2. Can the constant in the cost function be used as an estimate of fixed delivery cost per month? Explain. Requirement 1. Estimate the cost function for delivery. Requirement 2. Can the constant in the cost function be used as an estimate of fixed delivery cost per month? Explain. The cost function in reouirement 1 is an estimate of how costs behave the rolovant ranoe. not at cont levels the The controller of the Twig Company is preparing the budget for 2021 and needs to estimate a cost function for delivery costs. Information regarding dellvery costs incurred in the prior 2 months are: (Click the icon to view the information.) Requirements 1. Estimate the cost function for delivery. 2. Can the constant in the cost function be used as an estimate of fixed dolivery cost per month? Explain. Requirement 2. Can the constant in the cost function be used as an estimate of fixed delivery cost per month? Explain. The cost function in requirement 1 is an estimate of how costs behave the felevant range, not at cost levels the relevant rance. If there are no months with zero miles driven represented in the dobvery cost account in the general ledger, data in that account be used to estimato the flixed conts at the zero miles driven level. The constant component of the cost function provides the best available starting point for a straight line that approximates how a cost behaves

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