Suppose you have the responsibility of creating a cost function for the costs of an Internet service provider’s help line.

REQUIRED

A. What is the cost object? Identify where you might obtain information about past costs for the cost object.

B. Identify at least two potential cost drivers. Explain where you might obtain information about past volumes for each cost driver.

C. What other information would you like to obtain before estimating the cost function? How might you obtain that information?

D. Identify the techniques introduced in this chapter that you would be most likely to use in creating the cost function. Explain why.