A Limitation of Using the Scattergraph Method to Estimate the Cost

question 156

Multiple Choice

A limitation of using the scattergraph method to estimate the cost components of total cost is the

• A)scattergraph method is complex and costly to use.
• B)scattergraph method requires the use of statistical software.
• C)scattergraph method is not an accepted method for many companies.
• D)choice of the line used to estimate the cost components is subjective.

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Definitions:

Brands

Names, terms, designs, symbols, or any other features that identify one seller's goods or services as distinct from those of other sellers.

Benefit

Refers to the value or advantage that customers obtain from a product or service, which meets their needs or solves their problems.

Customers

Individuals or organizations that purchase goods or services from a business, playing a crucial role in the business's success.

Firms

Business organizations, especially partnerships or corporations, engaged in commercial, industrial, or professional activities.