Breaking Down Mixed Costs (Part 2)- Managerial Accouting

The video tutorial introduces a computational approach to analysis using numbers, focusing on the scattergraph method. This method involves plotting costs and activities on a graph and drawing a line through the points, which is subjective. An example is provided using hours and total cost, illustrating how different lines can be drawn, leading to varying interpretations. The tutorial emphasizes the subjectivity of this method while acknowledging its usefulness.

What is the scattergraph approach and how does it work?

Explain the subjectivity involved in the scattergraph approach.

How do you plot data on a scattergraph?

Discuss the implications of having different lines with different slopes in a scattergraph.

In what ways can the scattergraph approach be useful despite its subjectivity?