A Scatter Plot Is Especially Useful When Managers Wish To

question 108

Multiple Choice

A scatter plot is especially useful when managers wish to:

• A) Compute a cost function
• B) Update a past cost function for future changes
• C) Study the relationship between a cost and a potential cost driver
• D) Analyze cost behaviour when only one period of data is available

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Definitions:

Marginal Benefit

The extra benefit or pleasure that someone receives from using an additional unit of a specific good or service.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a good or service.

Marginal Benefit

The extra utility or satisfaction that is derived from the consumption or manufacture of one more unit of a good or service.

Marginal Cost

The growth in complete cost caused by the manufacture of one more unit of a good or service.