A line on a scatter diagram that is intended to reflect the past relation between cost and volume is the:
A) Margin of safety line.
B) Break-even line.
C) Contribution margin line.
D) Estimated line of cost behavior.
E) Standard cost line.

Question

Quizplus · Accepted Answer

The estimated line of cost behavior is a line on a scatter diagram that reflects the past relation between cost and volume. It is also known as the cost function or regression line. The other answer options do not reflect the past relation between cost and volume on a scatter diagram.

A Line on a Scatter Diagram That Is Intended to Reflect