If regression analysis is used when measuring cost behavior,plotting the cost against each of the potential cost drivers is not necessary.

Question

Quizplus · Accepted Answer

Regression analysis involves fitting a line or curve to the data points, which requires plotting the cost against each of the potential cost drivers. This helps to determine which driver has the strongest correlation with the cost and therefore can be used as the best predictor of cost behavior.

If Regression Analysis Is Used When Measuring Cost Behavior,plotting the Cost