Which of the Following Is an Advantage of Using the Scatter-Graph

question 68

Multiple Choice

Which of the following is an advantage of using the scatter-graph method over the high-low method to estimate costs?

• A) It is a statistical method to determine "best fit".
• B) A cost analyst can review the data visually and eliminate outliers.
• C) The quality of the cost formula relies on the objective judgment of the analysts.
• D) The cost formula can be determined simply by looking at two points of data.

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Definitions:

Preferred Stock

A class of shares that offer their holders preferential rights to dividends and asset distribution over common stockholders, often without voting rights.

Treasury Shares

Shares of a company's own stock that it has reacquired and holds, which do not carry voting rights or pay dividends.

Authorized

Officially given a right or power to do something or the condition of having official permission.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.