Knowing the proper relevant range is essential to properly classify costs.

Name: Knowing the proper relevant range is essential to properly classify costs.
Brand: Quizplus
Rating: 4.9 (38 reviews)

Question

Quizplus · Accepted Answer

The relevant range is the range of activity where all the fixed and variable costs behave as expected. Knowing the relevant range is important to properly classify costs as fixed or variable, which helps in making more accurate forecasts and managerial decisions.

Knowing the Proper Relevant Range Is Essential to Properly Classify