Prediction of Cost by using Linear Regression Method

Abstract

Prediction of cost paves the way to the base line for development of industry. Before starting a business, it is imperative that one should know the potential of business to be cost-effective. As a business man, he is devoted to his business, thus predicting profit or loss before starting his business. Accordingly, he usually orders production manager or estimator to predict cost for industry on the basis of available data. Therefore, if an industry has a careful plan for cost prediction, it may be sure of great success in business. This paper describes a system as a model to predict cost in rice industry. Thus, this system applies linear regression method to cost prediction for rice production and its sale according to profit or loss. This system is appropriate to reporting formats, including provisions for product reporting rather than simply calculating cost estimates on paper by yearly.