TB MC Qu. 5-46 Which of the following is true about the visual...

Which of the following is true about the visual fit method?

The visual fit method is the most objective way to fit a line to cost data using a scattergraph.

Although a scattergraph can be created by hand, the visual fit method of determining total fixed costs and variable costs per unit must be completed by computer.

Assuming the relationship between total cost and activity is (mostly) linear the visual fit method is an approximation of total fixed costs and variable costs per unit.

If the scattergraph shows there is not a linear relationship between total costs and activity, the visual fit method can give a close approximation of total fixed costs and variable costs per unit.