Which of the Following Is an Advantage of Using the Scatterplot

question 166

Multiple Choice

Which of the following is an advantage of using the scatterplot method over the high-low method to estimate costs?

• A)It is a statistical method to determine the "best fit."
• B)A cost analyst can review the data visually and eliminate outliers.
• C)The quality of the cost formula relies on the objective judgment of the analyst.
• D)The cost formula can be determined simply by looking at two points of data.

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Definitions:

External Environment

External factors, forces, situations, and events outside the organization that can affect its performance and strategies.

Bureaucracy

A rational and efficient form of organization founded on logic, order, and legitimate authority.

Formal Authority

The power or right, usually derived from a position or office, to make decisions, give orders, and enforce obedience.

Network Structure

An organization structure that uses information technologies to link with networks of outside suppliers and service contractors.