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

Question

Quizplus · Accepted Answer

The scattergraph method can help identify unusual non-recurring cost behaviors that may not be easily discernible through other methods. However, it does not guarantee a consistently more accurate or precise analysis, and the regression line may not necessarily intersect all cost points.

Which of the Statements Is Correct About Using the Scattergraph