A scatter diagram helps to determine if a linear relationship exists between a cost item and its related activity measure.

Name: A scatter diagram helps to determine if a linear relationship exists between a cost item and its related activity measure.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A scatter diagram is a graphical representation of the relationship between two variables. By plotting the data points on a scatter diagram, we can identify whether there is a linear relationship between the cost item and its related activity measure.

A Scatter Diagram Helps to Determine If a Linear Relationship