Asked by Zachary Summach on Jul 13, 2024
Verified
The relevant range is the range of activity within which the assumption that cost behavior is strictly linear is reasonably valid.
Relevant Range
The range of activity or volume over which the assumptions about variable and fixed cost behaviors hold true, beyond which cost patterns may change.
Cost Behavior
The way in which a cost reacts to changes in the level of activity.
- Outline the principles of committed fixed costs and the applicable scope for analyzing cost behavior.
Verified Answer
TF
Taylor FlookJul 16, 2024
Final Answer :
True
Explanation :
The relevant range is the range of activity over which the assumption of linear cost behavior is reasonably valid.
Learning Objectives
- Outline the principles of committed fixed costs and the applicable scope for analyzing cost behavior.
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