The Relevant Range Is

question 16

Multiple Choice

The relevant range is:

• A) the range in which costs remain variable.
• B) the range of activity over which we expect our assumptions about cost behavior to hold true.
• C) the range of activity based on the volume-based cost driver.
• D) the range in which costs remain fixeD.
• The relevant range is the range of activity over which we expect our assumptions about cost behavior to hold true.

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Definitions:

Business

An entity engaged in commercial, industrial, or professional activities with the aim to produce profit or fulfill a charitable mission.

Personal Income Taxes

Taxes levied on the income of individuals, typically based on their earnings from employment, investments, and other sources.

Proprietor

The owner of a business establishment, a shop, or any other commercial enterprise.

Sole Proprietorship's Profits

The total income a sole proprietorship generates after expenses are deducted, belonging entirely to the business owner.