Graphic analysis, Managerial Accounting

Graphic Analysis

Whenever you have two data points, you should generally suppose a linear relationship. When you acquire more data, you can study the data to determine when there is truly a linear relationship.

You must always graph the data before executing an algebraic analysis.

  • Graphic study is the finest way of developing an overall view of the cost-volume relationship.
  • Graphic study is helpful in analyzing cost-volume relationships, mainly, when the cost and volume numbers included are associatively small.
  • Even whenever actual analysis is executed algebraically you can use graphs to elaborate cost-volume study to others.

Posted Date: 12/5/2012 6:55:00 AM | Location : United States

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