Questions: The high-low method of analyzing the cost behavior of a mixed cost uses a(n) square to illustrate cost and volume data relationships.
Transcript text: The high-low method of analyzing the cost behavior of a mixed cost uses a(n) $\square$ to illustrate cost and volume data relationships.
Solution
The answer is: scattergraph
Explanation:
The high-low method is a technique used to separate the fixed and variable components of a mixed cost. It involves identifying the highest and lowest levels of activity and their associated costs.
A scattergraph is a type of graph that plots data points on a two-dimensional plane, typically with cost on the vertical axis and volume or activity level on the horizontal axis.
By using a scattergraph, one can visually assess the relationship between cost and volume data, making it easier to identify patterns or trends and apply the high-low method effectively.
Other options, such as a line graph or bar chart, are not typically used in the context of the high-low method for analyzing mixed costs.