Asked by
Ellie Mwangi
on Oct 11, 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 within which the assumptions about variable and fixed cost behavior are valid.
Cost Behavior
The study of how specific costs change in relation to changes in a company's level of activity or volume of output.
Linear
Pertaining to or resembling a line; often used in mathematics to describe a relationship of direct proportionality.
- Understand the concept of the relevant range and its application to cost behavior.
Verified Answer
RG
Learning Objectives
- Understand the concept of the relevant range and its application to cost behavior.