Conventional and Current way of Interpretation and Cost Forecasting

Abstract
This study discuses Short-term cost interpretation, regression analysis with time-series data, long term cost interpretation, Regression analysis using cross-section data, cost forecasting and Changes in the productivity of production factors. Short-term cost interpretation lead to short-term decisions, the concept of incramental costs has a very important role which includes variable costs and changes in fixed costs. Long term cost interpretation to analyze the production function of several different firms, long-run cost estimates can be used. Based on these conditions, the estimation of long-term costs uses cross-section data. Forecasting costs for various levels of output in the coming period requires an assessment of changes in the efficiency of the production process physically, plus changes in the prices of production factors used in the production process.