Asked by
Jaira Marie Padasay
on Oct 11, 2024Verified
The relevant range concept is applicable to mixed costs.
Relevant Range
The span of activity or volume over which the specific assumptions of cost behavior hold true, often considered in budgeting and decision-making.
Mixed Costs
Expenses that contain both fixed and variable components, changing in total with the level of activity but not directly proportional.
- Comprehend the principle of the relevant range and its utilization in understanding cost behavior.
Verified Answer
PS
Learning Objectives
- Comprehend the principle of the relevant range and its utilization in understanding cost behavior.