Evidence of relationships and extreme observations are highlighted when costs and their cost drivers are plotted graphically.

Question

Quizplus · Accepted Answer

When costs and their cost drivers are plotted graphically, it becomes easier to identify relationships and extreme observations. This is because a visual representation of the data can help to identify patterns and outliers, which may not be as apparent when the data is presented in a table or spreadsheet. Therefore, graphical analysis plays an important role in cost analysis and management.

Evidence of Relationships and Extreme Observations Are Highlighted When Costs