Wk 6 Discussion (Cost Drivers) - Post 3

A company invests considerable time and money to develop sophisticated cost functions that rate high on all evaluative criteria. In the course of using the cost functions, a manager notes that in several instances, the actual costs were different from the predicted costs, resulting in lower profits during one quarter of the year. The question of the value of the cost function is asked.   Give some suggestions on how to answer the manager 

 Do you think that a lot of companies have issues in this area also? 

PLEASE ANSWER WITHIN THE NEXT 12 HOURS

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