A Limitation of Using the Scattergraph Method to Estimate the Cost

question 146

Multiple Choice

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

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

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