Asked by Garrett Wynne on Apr 24, 2024
Verified
The method most likely to produce the most precise line of cost behavior and require the least amount of judgment is the scatter diagram.
Scatter Diagram
A graphical representation used to visualize the relationship between two variables, often to identify potential correlation or patterns.
- Attain an understanding of the application and restrictions of several procedures for the analysis of cost behavior.
Verified Answer
AJ
Allen JonesMay 02, 2024
Final Answer :
False
Explanation :
The method most likely to produce the most precise line of cost behavior and require the least amount of judgment is regression analysis, not the scatter diagram. The scatter diagram is a useful tool for visualizing the relationship between two variables, but it does not provide a precise line of cost behavior. Regression analysis uses statistical techniques to estimate the relationship between two variables and can provide a more precise line of cost behavior.
Learning Objectives
- Attain an understanding of the application and restrictions of several procedures for the analysis of cost behavior.
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