A graph used to analyze past cost behaviors by displaying costs and unit data for each period as points on a 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 a graph that displays cost and unit data for each period as points on a diagram. It is used to analyze past cost behaviors and to identify any patterns or relationships between cost and units. Least-squares diagrams are used to estimate future costs based on past data and are not relevant to this question. Step-wise and break-even diagrams are specific types of graphs used for different purposes. A composite diagram is not a recognized term in accounting or finance.

A Graph Used to Analyze Past Cost Behaviors by Displaying