Asked by Princess Ritsu on Jul 19, 2024

verifed

Verified

To determine the slope of the variable cost from a scatter diagram,divide the change in units by the change in cost.

Slope of the Variable Cost

Represents the rate at which variable cost changes in relation to a change in output or activity level.

Scatter Diagram

A graphical representation used in statistics to show the relationship between two variables, displaying points at which a variable occurs.

Change in Units

The difference in the number of units, items, or parts between two periods, often used in inventory, production, or sales analysis.

  • Familiarize oneself with the intention and process behind the development of scatter charts.
verifed

Verified Answer

SA
Stacey AmadorJul 19, 2024
Final Answer :
False
Explanation :
To determine the slope of the variable cost from a scatter diagram, you divide the change in cost by the change in units.