Cost relationships may change at output levels outside of the relevant range.

Name: Cost relationships may change at output levels outside of the relevant range.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The relevant range is the range of output levels over which cost relationships are valid. If output levels go beyond this range, certain fixed costs may become variable, and therefore cost relationships may change. This can lead to unexpected costs and difficulties in forecasting future costs.

Cost Relationships May Change at Output Levels Outside of the Relevant