Describe the conference method for estimating a cost function. What are two advantages of this$$ method?

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Part $1$

A$.$

The conference method estimates cost functions on the basis of analysis and opinions about costs and their drivers gathered from various departments of a company$($purchasing$,$ process$$ engineering, manufacturing, employee$$ relations, etc.$).$ Advantages of the conference method$$ include:

$1.$ The speed with which cost estimates can be developed.

$2.$ The pooling of knowledge from experts across functional areas.

B$.$

The conference method uses a formal mathematical method to fit cost functions to past data observations. Advantages of the conference method$$ include:

$1.$ The speed with which cost estimates can be developed.

$2.$ Easy to use.

C$.$

The conference method estimates cost functions by analyzing the relationship between inputs and outputs in physical terms. Advantages of the conference method$$ include:

$1.$ It is a thorough and detailed way to estimate a cost function when there is a physical relationship between inputs and outputs.

$2.$ Some government contracts mandate its use.

D$.$

The conference method estimates cost functions by classifying various cost accounts as$$ variable, fixed, or mixed with respect to the identified level of activity. Advantages of the conference method$$ include:

$1.$ Reasonably accurate.

$2.$ Easy to use.