Asked by Charlie gilmore on Jul 17, 2024
Verified
The relevant range of activity is the activity level where the firm will earn income.
Relevant Range
The range of activity within which assumptions about variable and fixed cost behavior are valid.
Activity Level
The volume of production or the degree of activity in a business operation, which can affect variable costs.
Earn Income
The process of receiving payment through work, investments, or business operations.
- Apprehend the dynamics between activity volumes and their influence on variable and unchanging costs.
Verified Answer
AM
Alissa M. LosetoJul 22, 2024
Final Answer :
False
Explanation :
The relevant range of activity refers to the range of activity within which the assumptions about fixed and variable costs are valid, not specifically where the firm will earn income.
Learning Objectives
- Apprehend the dynamics between activity volumes and their influence on variable and unchanging costs.