Below Are Cost and Activity Data for a Particular Cost

question 7

Essay

Below are cost and activity data for a particular cost over the last four periods.Your boss has asked you to analyze this cost so that management will have a better understanding of how this cost changes in response to changes in activity.

$\begin{array}{cc}&\text { Activity } & \text { Cost } \\\text { Period 1}&46 & \$ 292 \\\text {Period 2 }&40 & \$ 271 \\\text {Period 3 }&42 & \$ 279 \\\text {Period 4 }&41 & \$ 267\end{array}$

Required:
Using the least-squares regression method,estimate the cost formula for this cost.

---

Definitions:

Reciprocity

A social norm that involves mutual exchange, where an action or service is repaid with another action or service of similar value.

Customer Maintenance

The ongoing activities and efforts made by a business to retain and satisfy existing customers, ensuring their continued patronage and loyalty.

Computer Network

A collection of interconnected computers and other devices that share resources, exchange data, and communicate.

Transaction Selling

A sales approach focused on completing individual sales transactions rather than building long-term customer relationships.