What is an advantage of using the scattergraph method over the high-low method to estimate costs?
A) A cost analyst can review the data visually and eliminate outliers.
B) It uses statistics to determine a "best fit" line through a set of data points.
C) The cost formula can be determined simply by looking at two points of data.
D) It provides a superior quality cost formulae because it relies on the objective judgement of the analysts.

Question

Quizplus · Accepted Answer

The scattergraph method allows a cost analyst to visually review data points and identify any outliers or unusual data points that may skew the results. This visual inspection can provide a more accurate cost estimate. The high-low method, on the other hand, may be influenced by outliers since it only uses the highest and lowest data points to estimate costs.

What Is an Advantage of Using the Scattergraph Method Over