BUS105: Managerial Accounting

This video demonstrates how the scattergraph method is applied to Danny Office Supplies to estimate the next month's shipping costs. The scattergraph method has five steps and starts with plotting all points on a graph and fitting a line through the points. This line represents costs throughout a range of activity levels and is used to estimate fixed and variable costs. The scattergraph is also used to identify any outlying or unusual data points.