a line on a scatter diagram to show the relation between cost and unit volume is the: multiple choice margin…

a line on a scatter diagram to show the relation between cost and unit volume is the: multiple choice margin of safety line. break - even line. contribution margin line. estimated line of cost behavior. standard cost line.

a line on a scatter diagram to show the relation between cost and unit volume is the: multiple choice margin of safety line. break - even line. contribution margin line. estimated line of cost behavior. standard cost line.

Answer

Brief Explanations:

  • The margin of safety line relates to the difference between actual or expected sales and break - even sales.
  • The break - even line shows the point where total costs equal total revenues.
  • The contribution margin line is related to the amount that contributes to covering fixed costs and profit after variable costs are deducted.
  • The standard cost line is based on pre - determined costs.
  • The estimated line of cost behavior is specifically used on a scatter diagram to show the relationship between cost (y - axis) and unit volume (x - axis).

Answer:

Estimated line of cost behavior.