If you create a scatter plot of a cost against a cost driver:
A) You gain information about whether there is a seeming relation between the cost and cost driver
B) For all costs, you will have completed your analysis
C) You gain no new information about the relationship between the cost and cost driver
D) You will not need to perform regression analysis to estimate the cost function

Question

Quizplus · Accepted Answer

Creating a scatter plot of a cost against a cost driver can provide information about whether there is a relationship between the two variables, which can later be used in regression analysis to estimate the cost function. However, it does not provide information about all costs, and regression analysis is still needed to estimate the cost function.

If You Create a Scatter Plot of a Cost Against