Fill in the Blank QuestionFill in the blank question.A statistical method for identifying cost behavior is called .

The statistical method for identifying cost behavior is called regression analysis.

Regression analysis is a powerful statistical tool used to understand the relationships between variables. In the context of cost behavior, it helps organizations determine how varying levels of activity affect their costs. This method involves plotting data points on a graph to produce a line of best fit, which can reveal trends and enable businesses to predict future costs based on expected activity levels. By analyzing historical data on costs and activity levels, regression models can help in forecasting and budgeting, aiding in informed decision-making processes. Various types of regression, such as linear regression, can illustrate how fixed and variable costs behave relative to business operations.