VISUAL-FIT METHOD Definition

Bookmark and Share

VISUAL-FIT METHOD is a cost estimation method where an analyst examines a cost by plotting points on a graph (called a scatter diagram) and places a line through the points to yield a cost function. This method is more objective than the account-classification method, but it is still lacking because two cost analysts could (and likely would) visually fit different lines. Such an approach is useful, though, because it helps spot non-representative data points, or outliers.

Learn new Accounting Terms

PROCESSING CONTROL, in accounting, is an internal control included in computer software designed to assure that all transactions are handled as authorized and none omitted or added.

PERSONAL LOAN is a short-term loan that is extended based on the personal integrity of the borrower.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.