(Appendix 2A)When analyzing a mixed cost, you should always plot the data in a scattergraph, but it is particularly important to check the data visually on a scattergraph when the R² from a least squares regression is low.A quick look at the scattergraph can reveal that there is little relation between the cost and the activity or that the relation is something other than a simple straight line.

Question

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It is important to visually check the data on a scattergraph when the R² from a least squares regression is low to determine if there is a clear linear relationship or if the relationship is more complex.

(Appendix 2A)When Analyzing a Mixed Cost, You Should Always Plot