Given the Following Four Cost Behaviors and Expected Levels of Cost-

question 115

Essay

Given the following four cost behaviors and expected levels of cost- driver activity, predict total costs.
a. Fuel costs of driving vehicles, $0.37 per mile, driven 20,000 mile per month
b. Computer rental cost, $500 per piece of equipment per month for three computers for four months
c. Crew supervisors' costs, where a new supervisor is hired for each 10 workers employed; the supervisors are paid $50,000 per year and there were 82 workers employed.
d. Purchasing department cost for 4,000 orders in one month. Its cost function is $8,000 per month plus $7 per material order processed.

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Definitions:

Statistical Significance

A statistical assessment that indicates whether the observed differences or relationships between datasets are likely to be real or if they occurred by chance.

Demand Characteristics

Cues in an experiment that might inform participants of the purpose of the study or what behaviors are expected from them, potentially influencing the authenticity of their responses.

Random Assignment

A method used to place participants into groups in such a way that each participant has an equal chance of being assigned to any group.

Representative Sample

A sample that accurately reflects the characteristics of the population from which it is drawn, ensuring the generalizability of research findings.