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.