Asked by Chelsea Garcia-Perez on May 05, 2024
Verified
The concept of the relevant range does not apply to fixed costs.
Relevant Range
The span of activity levels within which certain cost assumptions and behaviors are considered valid and accurate for management decisions.
- Understand the concept of the relevant range and its application to cost behavior.
Verified Answer
RH
Rachel HamiltonMay 09, 2024
Final Answer :
False
Explanation :
The concept of the relevant range applies to both fixed and variable costs. It refers to the range of activity within which the assumptions about cost behavior are valid. For fixed costs, this means that they are expected to remain constant within the relevant range of activity, but could change outside of that range.
Learning Objectives
- Understand the concept of the relevant range and its application to cost behavior.
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