Asked by Bohdan Simakov on May 02, 2024
Verified
In a scattergraph of cost and activity, activity is the independent variable because it causes variations in the cost.
Scattergraph
A graphical method used in statistics to display the values of two variables for a set of data, helping to identify the relationship between them.
Independent Variable
A variable that acts as a causal factor; activity is the independent variable, as represented by the letter X, in the equation Y = a + bX.
- Comprehend the principles of scattergraph method and the role of activity as an independent variable in cost behavior analysis.
Verified Answer
JN
Jennifer NarvaezMay 03, 2024
Final Answer :
True
Explanation :
In a scattergraph, the independent variable is placed on the X-axis and the dependent variable is placed on the Y-axis. In this case, activity is the independent variable because changes in activity levels will typically cause changes in costs, making cost the dependent variable.
Learning Objectives
- Comprehend the principles of scattergraph method and the role of activity as an independent variable in cost behavior analysis.