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What happens as the level of activity decrease within the relevant range?
Although fixed cost per unit decreases with increases in activity levels, total fixed cost is not affected by changes in the activity level within the relevant range.
Which cost will change with a decrease in activity within relevant range?
unit fixed costs and total variable cost
Which costs will change with an increase in activity within the relevant range?
Unit Fixed Cost and Total Variable Cost Kenny Kalejaiye
An increase in the activity level within the relevant range results in?
A decrease in fixed cost per unit
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.
Why relevant range important?
outside the relevant range, variable cost and fixed cost behaviors patterns may change
What happens as the level of activity decrease within the relevant range?
Although fixed cost per unit decreases with increases in activity levels, total fixed cost is not affected by changes in the activity level within the relevant range.
Which cost will change with a decrease in activity within relevant range?
unit fixed costs and total variable cost
What is relevant rang of activity level in an organization in accounting?
The relevant range of activity level in accounting refers to the range of operations over which a company's cost behavior patterns remain consistent. It helps in making accurate cost predictions and budgeting decisions based on historical data. Understanding the relevant range is crucial for management to optimize resources effectively.
What is relevant rang?
Relevant range is an accounting term that pertains to the minimum and maximum value. It sets the cost boundary in a certain activity level.
The term relevant range as used in cost accounting means the range over which?
Tut Tut Peter Clarke wudnt be happy??
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.
Which costs will change with an increase in activity within the relevant range?
Unit Fixed Cost and Total Variable Cost Kenny Kalejaiye
An increase in the activity level within the relevant range results in?
A decrease in fixed cost per unit
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.
Definition of step costs?
step cost : its a cost that is fixed cost during the short run within the relevant range , and it will become variable cost over the long run as supervisory salary .
What happens Cost driver activity level increases within the relevant range?
total fixed costs remain unchanged
