110) Rent on a factory building would likely be classified as a fixed cost.
111) If the data points in a scatter plot fall in a fairly straight line, it means that there is a fairly strong relationship between cost and volume.
112) If there is little or no relationship between the cost and the volume, the data points on a scatter plot will appear almost as a straight line.
113) A scatter plot helps managers visualize the relationship between historical costs and volume.
114) A scatter plot will help managers identify potential outliers.
115) If a scatter plot reveals a fairly weak relationship between cost and volume, the cost equation based on that data would not be very useful for predicting future costs.
116) If a scatter plot reveals a fairly weak relationship between cost and volume, the manager should select a different activity for modeling cost behavior.
117) Outliers are data points that fall in the same general pattern as the other data points.
118) Outliers are abnormal data points.
119) If a manager sees a potential outlier in the data, he or she should first determine whether the data is correct.