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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.
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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.
Who said the animal behaves like a scientist detecting causal relations among events and using a range of information about those events to make relevant inferences?
Rescorla
Why is the basin and range province important?
because it is a geological term for topography
What is a synonym and antonym for the word irrelevant?
Synonyms: insignificant, unnecessary, inappropriate, unimportant Antonyms: relevant, appropriate, necessary, significant, important
What is an example sentence with the word relevant in it?
How is this relevant to the study?I need to find all the relevant data.
Why relevant range important?
outside the relevant range, variable cost and fixed cost behaviors patterns may change
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.
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.
Why is it important to keep the relevant range in mind when predicting total costs?
The relevant range is crucial when predicting total costs because it defines the level of activity over which fixed and variable cost behavior remains consistent. Outside this range, costs may change, making predictions inaccurate. Understanding the relevant range ensures that businesses can effectively budget, forecast, and make informed decisions based on expected production levels. Ignoring it can lead to miscalculations in overall costs and impact financial planning and profitability.
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 is the word for new and important?
new-recent important-relevant
What does relevant range means?
The span of activity in which a company expects to operate.
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 an eight letter word for important?
relevant
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.
