SCATTERGRAPH METHOD
Scattergraph Method is used to estimate and budget for future costs. It employs the use of visual techniques on semi-variable expense also known as a mixed expenses to segregate the fixed and variable elements. The scattergraph is presented in a form of a geometric plane or graph where the x-axis or the horizontal line is the production activity while the y-axis or the vertical line is the cost. The plotted data will show dots on the graph that will show a regression line depicting the relationship between the mentioned variables.
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