Which of the Following Is True About the Visual Fit

question 44

Multiple Choice

Which of the following is true about the visual fit method?

• A)The visual fit method is the most objective way to fit a line to cost data using a scattergraph.
• B)Although a scattergraph can be created by hand,the visual fit method of determining total fixed costs and variable costs per unit must be completed by computer.
• C)Assuming the relationship between total cost and activity is (mostly)linear the visual fit method is an approximation of total fixed costs and variable costs per unit.
• D)If the scattergraph shows there is not a linear relationship between total costs and activity,the visual fit method can give a close approximation of total fixed costs and variable costs per unit.

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