A graph used to analyze past cost behaviors by displaying costs and volume levels for each period as points on the diagram is called a:
A) Least-squares diagram.
B) Step-wise diagram.
C) Scatter diagram.
D) Break-even diagram.
E) Composite diagram.

Question

Quizplus · Accepted Answer

A scatter diagram is used to display the relationship between two variables, in this case, cost and volume levels for each period. It allows for the analysis of past cost behaviors by showing how the two variables are related and can help identify patterns or trends in the data. The other options, such as least-squares and break-even diagrams, are specific types of graphs or calculations that may be used in cost analysis but are not as general as scatter diagrams.

A Graph Used to Analyze Past Cost Behaviors by Displaying