Which of the statements is correct about using the scattergraph method in analyzing costs?
A) The unusual non-recurring cost behaviours are likely to be apparent.
B) The regression line intersects all plotted cost points.
C) The resulting information is precise,regardless of who performs the analysis.
D) The resulting information will consistently be more accurate than that from other methods.

Question

Quizplus · Accepted Answer

The scattergraph method is useful in identifying unusual non-recurring cost behaviours, such as outliers or abnormal spikes in cost. However, it is not precise and can be affected by the individual performing the analysis. The regression line does not necessarily intersect all plotted cost points, and the resulting information may not consistently be more accurate than other methods.

Which of the Statements Is Correct About Using the Scattergraph