What are the various methods of estimating cost functions? Explain each method with suitable numerical examples.         

Q1. Differentiate with suitable examples the relevant cash flows and irrelevant cash flows. What relevant role do these cash flows provide in management decision-making? Provide a suitable example in context to an organization to support your answer.                                          (3 Marks)

                                                                                                                                                                           

Note: Your answer must include suitable examples of relevant and irrelevant cash flows for management decision-making.                                                                                (Week 2, Chapter 1)

 

Q2. What are the various methods of estimating cost functions? Explain each method with suitable numerical examples.                                                                                                 (4 Marks)

Note: You are required to assume values for numerical examples of your own, and they should not be copied from any sources.                                                                                         (Week 3, Chapter 2)

Answer: