5. High-low Method = year)110()00.195.1$(

= 0.1055 per year

6. Planing is important for an organization. If the manager does not plan well earlier inestimation of the area of storage space whether is fix with the quantity of stocks , number ofemergency procedure will increase as the risk of facing insufficient storage due to over supplyof stocks is high.7.High-low MethodVariable cost of activity per unit = levelsactivityindifference

levelstindifference___

_cos__

This method is used to calculate the variable and fixed cost components. Not confident as thereis only 2 data are use to estimate cost behavior . Its not accurately represents the cost behaviorwithin the relevant range.

Simple RegressionY=a+bXY : dependent variable ( total cost )a : fixed cost componentb : variable cost per unitX : independent variable (quantity of activity )Regression utilises all of the data points given to determine the line of best fit , this allows us tomake cost predictions and draw inferences about the relationship between cost of activity .Not confident as it only involves 1 dependent variable and 1 independent variable.Multiple regressionY= 2211 xbxba Regression estimates a linear relationship between 1 dependent variable and 2 or moreindependent variablesConfident because its more accurate for cost predictions8. As multiple regression involve more than 1 independent variables , it can show us moreaccurate cost for us to do the prediction in the future . So , its may give us more benefits in costprediction and made the model ( multiple regression) more relevant .