DEFINITION of 'Scattergraph Method'
A visual technique for separating the fixed and variable elements of a semivariable expense (also called a mixed expense) in order to estimate and budget for future costs. A scattergraph is made up of a horizontal x axis that represents production activity, a vertical y axis that represents cost, data that are plotted as points on the graph and a regression line that runs through the dots which represents the relationship between the variables.
BREAKING DOWN 'Scattergraph Method'
Business managers use the scattergraph method in cost estimation to anticipate operating costs at different activity levels. The method gets its name from the overall image of the graph, which consists of many scattered dots. While the method is simple, it is also imprecise. Alternate methods of cost estimation include the highlow method, account analysis and least squares.

HighLow Method
In cost accounting, a way of attempting to separate out fixed ... 
SemiVariable Cost
A cost composed of a mixture of fixed and variable components. ... 
Line Of Best Fit
A straight line drawn through the center of a group of data points ... 
Variable Cost
A corporate expense that varies with production output. Variable ... 
Semivariance
A measure of the dispersion of all observations that fall below ... 
Variable Cost Ratio
Variable costs expressed as a percentage of sales. The variable ...

Economics
Understanding Regression
Regression is a statistical analysis that attempts to predict the effect of one or more variables on another variable. 
Options & Futures
Options Risk Graphs: Visualizing Profit Potential
With a single diagram, you can see how price, time and volatility affect potential gains. 
Fundamental Analysis
What is a Line Of Best Fit?
A line of best fit is a straight line drawn through the center of a group of data points on a scatter plot. 
Fundamental Analysis
The Operating Leverage And DOL
Operating leverage tells investors about the relationship between a company's fixed and variable costs. The higher a company's fixed costs in relation to its variable costs, the greater its operating ... 
Economics
What Are The Different Types Of Costs In Cost Accounting?
Cost accounting measures several different types of costs associated with a companyâ€™s production processes. 
Budgeting
The Complete Guide To Planning A Yearly Budget  Making Budget Projections
The best yearly budgets are well thought out and accurate, providing a realistic view of your finances for the next year. If you write down that you are going to spend $100 a month on groceries, ... 
Economics
What Does Short Run Mean?
Short run is the concept that for a business, at least one factor of production is fixed while others are variable. 
Retirement
Don't Lose Your Shirt On Mutual Fund Sales
Mutual funds aren't guaranteed profitmakers, but with the right calculations and timing, you can avoid major losses. 
Stock Analysis
How This New ETF Tracks Millennial Consumer Habits
A recently launched ETF aims to track Millennial consumer habits. 
Personal Finance
Alternate Methods Of Online Payment
Paying by credit is one of the most common methods of payment for online shopping in the U.S. However, there are many other options worth testing out.

How are semivariable costs similar to fixed costs?
Learn what fixed costs are, what semivariable costs are, why semivariable costs are similar to fixed costs, and how semivariable ... Read Answer >> 
Do production costs include all fixed and variable costs?
Learn more about fixed and variable costs and how they affect production costs. Understanding how to graph these costs can ... Read Answer >> 
What is the difference between direct costs and variable costs?
Learn about variable costs and direct costs, how direct costs and variable costs are classified and the differences between ... Read Answer >> 
What are the differences between absorption costing and variable costing?
Examine the main differences between absorption costing and variable costing, along with the advantages and disadvantages ... Read Answer >> 
What is the difference between linear regression and multiple regression?
Learn the difference between linear regression and multiple regression and how multiple regression encompasses not only linear ... Read Answer >> 
Do minimum wage laws make labor a fixed or variable cost?
Find out why labor is a classified as a semivariable cost by the minimum wage laws; labor has elements of both fixed costs ... Read Answer >>