A cost and/or volume of activity that is outside of an expected range.
A cost and/or volume of activity that is outside of an expected range.
What is an outlier? In cost accounting, an outlier could be a cost or its related level of activity that is out of line with other observations. An outlier can be detected by plotting each observation’s cost and...
?referred to as an outlier. You may decide to use the second highest level of activity, if the related costs are more representative. If the $6,000 of cost at the 400 units of activity is an outlier, you might select...
of the points as well as any outlier(s). Also keep in mind that correlation does not guarantee there is a cause and effect relationship. Join PRO to Track Progress Mark the Question as Read Must-Watch Video Learn How to...
: the highest point and the lowest point. The scattergraph will reveal if either of the two points is an outlier. Regression analysis uses all of the monthly electricity bill amounts and their related number of equipment...
and the variable cost rate for mixed costs uses only two points of data. Mark as wrong Mark as right outlier This data point could be caused by a cost or quantity that is not in line with other observations. It is often...
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