A Limitation of Using the Scattergraph Method to Estimate the Cost

question 32

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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Definitions:

Videoconference

A technology-enabled meeting in which participants in different locations interact via video and audio transmissions, allowing for real-time communication.

Cost Effective

Refers to a process, action, or methodology that achieves its objectives without wasting resources, ideally delivering the best possible outcome for the lowest cost.

Critical Issues

Significant problems or challenges that require immediate attention and resolution to prevent negative consequences.

Bottom Line

The final total of an account, balance sheet, or financial result, often referring to a company's net income or profit.