Trend Chart
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Prepare a short range trend chart of the operations appraisal cost/production cost ratio using the following data:
Month Operational appraisal costs (thousands) Production costs (thousands)
Jan $10 $100
Feb $13 $120
Mar $9 $115
Apr $11 $145
May $9 $125
June $8 $95
Jul $8 $105
What information does the chart give? Suggest additional information that could be valuable.
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Solution Summary
The solution prepares a trend chart using the data given in the question and interprets it.
Solution Preview
Please see the chart attached.
From the chart, we can see a downward trend. This means that operational appraisal cost as a percent of total production costs have ...
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