What Is an Advantage of Using the Scattergraph Method Over

question 10

Multiple Choice

What is an advantage of using the scattergraph method over the high-low method to estimate costs?

• A) A cost analyst can review the data visually and eliminate outliers.
• B) It uses statistics to determine a "best fit" line through a set of data points.
• C) The cost formula can be determined simply by looking at two points of data.
• D) It provides a superior quality cost formulae because it relies on the objective judgement of the analysts.

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Definitions:

Sequence of Acquisition Dates

Refers to the chronological order in which significant ownership interests in other entities are obtained, impacting the consolidation process and valuation of investments.

Indirect NCI

Represents the portion of equity in a subsidiary not attributable directly to the parent company, often arising in complex group structures.

Tiered Group

A structure of multiple groups or entities arranged in a hierarchy, where control or ownership is exercised through several layers.

Notional Profits

Hypothetical or estimated profits based on assumptions or projections, not actual earnings.