A scatter plot is especially useful when managers wish to:
A) Compute a cost function
B) Update a past cost function for future changes
C) Study the relationship between a cost and a potential cost driver
D) Analyze cost behaviour when only one period of data is available

Question

Quizplus · Accepted Answer

A scatter plot helps to visually study the relationship between a cost and a potential cost driver, which is useful for managers in understanding cost behavior and making decisions regarding cost management. It does not involve computing or updating a cost function, and while it can be used with a single period of data, it is not limited to such a scenario.

A Scatter Plot Is Especially Useful When Managers Wish To