Free Essay

Cost Estimation

In: Business and Management

Submitted By Piveen
Words 275
Pages 2
Hilton & Plat 2015
Case Study Chapter 6
Cost Estimation
Cost Behavior


ABC Donuts Tasty Sdn Bhd
Jan 20XX - Dec 20XX
Utility bill
Semi Variable

Account Classification / Visual-Fit Method /
Cost Estimation MethodHigh Low Method / Least Square Regression




Cost Monthly




Cost Estimation Method
Activity or Cost Driver dozens of bakery items number of sold per month customers per

Cost Estimation Method
Engineering Method

Using relevant research techniques, the production team has conducted a research from ground up trying to identify whether utlities is actually affected by level of activities.
Base on the research performed, production research team has identified various activities that is related to usage of utilties.
Among the activities are:
1. Administrative activities use of computers
2. Kitchen activities using high level of electricity on kitchen appliances and water for baking donuts
3. serving customers activities at the front line also requires usage of utilities including air-conditioning, lighting to display case
Hence, it may be concluded that
1/3 of the utilties is expected to be fixed while the remaining utilities cost

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