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What is the significance of the relevant range to break even analysis?
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What are the five assumptions of break even analysis?
1 - All costs are classified as fixed cost or variable cost 2 - Fixed cost remains fixed within relevant range 3 - Behaviour of revenues and costs will be linear within relevant range 4 - In case of multiple products, the proportion of units, price and cost will not change 5 - There is no significant change in inventory level in period in review.
Relevant range of activity?
The relevant range of activity refers to a the current level of production. If production drops or increases, then the relevant range will change.
A term describing a firm's normal range of operating activities is?
The relevant range of operations.
What is relevant cost range?
The price range that an asset or commodity will fluctuate within. The relevant cost range for a barrel of oil has been increasing dramatically thanks to the US Biden administrations policies and the Ukraine - Russia war, for instance.
The relevant range concept is not applicable to mixed costs?
false.
What are the five assumptions of break even analysis?
1 - All costs are classified as fixed cost or variable cost 2 - Fixed cost remains fixed within relevant range 3 - Behaviour of revenues and costs will be linear within relevant range 4 - In case of multiple products, the proportion of units, price and cost will not change 5 - There is no significant change in inventory level in period in review.
Relevant range of activity?
The relevant range of activity refers to a the current level of production. If production drops or increases, then the relevant range will change.
Did you follow a logical process of analysis based on relevant question?
Example: I went to a car dealer to buy a car. I followed a logical process of analysis when purchasing a car. The relevant question I asked was based upon my financial status. For example: how much the car is, what kind of down payments, what's my price range......etc.
Why relevant range important?
outside the relevant range, variable cost and fixed cost behaviors patterns may change
Define relevant range in accounting?
an increase or decrease on a company's fixed costs is however not only dependent on the relevant period but also on the relevant production range. The total fixed costs will remain constant if the relevant production range can be handled by the same number of production units, producing fewer steps. If a certain step ( certain cost level) encompasses the entire relevant range of activity, the costs are entirely fixed.
A term describing a firm's normal range of operating activities is?
The relevant range of operations.
Explain the significance of the open range?
produced artichokes
What is the range of the Nerf barrel break?
the range of the Nerf barrel break is 25-30 feet
What is relevant cost range?
The price range that an asset or commodity will fluctuate within. The relevant cost range for a barrel of oil has been increasing dramatically thanks to the US Biden administrations policies and the Ukraine - Russia war, for instance.
The relevant range concept is not applicable to mixed costs?
false.
What is the significance of the empty weight center of gravity range of an aircraft?
If the cg is not with in range the airplane will crash.
What does relevant range means?
The span of activity in which a company expects to operate.
