0
What else can I help you with?
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 is relevant range and why is it important?
The relevant range refers to the activity level within which fixed and variable cost behaviors remain consistent. It is important because decisions regarding budgeting, forecasting, and cost management are based on expected production or sales levels within this range. Outside the relevant range, costs may change, leading to inaccurate financial projections and potentially poor decision-making. Understanding the relevant range helps businesses maintain effective cost control and resource allocation.
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
Explain the concept of the relevant range?
The relevant range refers to the level of activity or volume within which fixed and variable cost behavior remains consistent. It is the range of production or sales levels where the assumptions about cost behavior, such as fixed costs remaining constant and variable costs per unit being stable, are valid. Outside this range, costs may change, potentially leading to different cost structures and affecting decision-making. Understanding the relevant range is crucial for budgeting, forecasting, and cost management.
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.
