A Major Disadvantage of the Scattergraph Method of Analyzing Cost

question 61

Multiple Choice

A major disadvantage of the scattergraph method of analyzing cost behavior is:

• A)It bases its solution on only two observations.
• B)It results in its analyzed cost being treated as either fixed or variable,based on which type of behavior it more closely resembles.
• C)Two persons could draw different lines through the data points.
• D)It enables non-representative points,called outliers,to be identified.

---

Definitions:

Self-Awareness

Insight into one's character, emotional responses, motivating factors, and longings.

Self-Evaluation

The process of reflecting on one's own abilities, actions, and characteristics to assess personal performance and qualities.

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and behavioral expression.

China

A vast country in East Asia with the world's largest population and a rich history, known for its significant cultural, economic, and political impact globally.