Question

The relevant range is indispensable in cost behavior analysis." Is this true? Why or why not?

The relevant range is indispensable in cost behavior analysis." Is this true? Why or why not?

Homework Answers

Answer #1

Yes , this is true Relevant range is indispensable in cost behaviour analysis

Cost behavior analysis is the study of how specific costs respond to changes in the level of activity within a company.

Relevant range usually refers to a normal range of volume or normal amount of activity in which the total amount of a company's fixed costs will not change as the volume or amount of activity changes.Relevant range is important because most companies operate within the relevant range. As within range, it is possible to establish a linear relationship for both variable and fixed costs. If a relevant range cannot be established, segregation of fixed cost and variable cost become extremely difficult .

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is cost behavior analysis and why is it important to management?
What is cost behavior analysis and why is it important to management?
Cost-volume-profit analysis assumes that over the relevant range     A.   Variable costs are nonlinear.     B.  ...
Cost-volume-profit analysis assumes that over the relevant range     A.   Variable costs are nonlinear.     B.   Fixed costs are nonlinear.     C.   Selling prices are unchanged.     D.   Total costs are unchanged
Describe the term relevant range. Why is it important to stay within the relevant range when...
Describe the term relevant range. Why is it important to stay within the relevant range when estimating costs?
cost-volume-profit analysis assumes that over the relevant range a.variable costs are nonlinear b. fixed costs are...
cost-volume-profit analysis assumes that over the relevant range a.variable costs are nonlinear b. fixed costs are nonlinear c.selling prices are unchanged d. total costs are unchanged
why is regression analysis is considered the most superior method of estimating cost behavior
why is regression analysis is considered the most superior method of estimating cost behavior
Discuss the significance that the concept of the relevant range has to break-even analysis.
Discuss the significance that the concept of the relevant range has to break-even analysis.
Which of the following defines variable cost behavior when activity increases within its relevant range? Select...
Which of the following defines variable cost behavior when activity increases within its relevant range? Select one: a. Total cost reaction to increase in activity Cost per unit reaction to increase in activity increases remains constant b. Total cost reaction to increase in activity Cost per unit reaction to increase in activity remains constant remains constant c. Total cost reaction to increase in activity Cost per unit reaction to increase in activity remains constant increases d. d. Total cost reaction...
The relevant range is the range that sales forecast may be reasonably be expected to reach...
The relevant range is the range that sales forecast may be reasonably be expected to reach in the next period. Group of answer choices True False
1. The approach-approach form of goal conflict is most relevant to the analysis of conflict. True...
1. The approach-approach form of goal conflict is most relevant to the analysis of conflict. True False 2.Those that have interpersonal conflict most often attribute the cause to a personality problem or defect in the other party. True False 3.Inter-group behavior occurs whenever individuals belonging to one group interact, collectively or individually, with another group or its members in terms of their reference group identification. True False 4.The performance of many tasks is strongly affected by stress and usually increases...
Instructions:   In terms of cost behavior, choose either “in total” or “per unit” to complete the...
Instructions:   In terms of cost behavior, choose either “in total” or “per unit” to complete the following sentences. A. Variable cost_____ is always constant regardless of the level of activity within the relevant range. B. As activity increases, the variable cost _____ will increase. Instructions: In terms of cost behavior, choose either “in total” or “per unit” to complete the following sentences. A. Fixed cost ____ is always constant regardless of the level of activity within the relevant range. B....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT