Relevant Range Is Defined As

question 23

Multiple Choice

Relevant range is defined as:

• A)The proportion of total costs that are fixed and variable.
• B)A statistical method that uses the normal range of operations to estimate fixed and variable costs.
• C)A non-statistical method that uses the normal range of operations to estimate fixed and variable costs.
• D)A firm's normal range of operations in which we expect a stable relation between activity and cost.
• E)None of the above.

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Definitions:

Stock Dividend

A dividend paid to shareholders in the form of additional shares of stock rather than cash.

Stock Split

A corporate action that increases the number of shares outstanding by dividing each share, which typically reduces the share price.

Par Value

The face value of a bond or the stated value of a share of stock at the time it is issued, typically used in accounting and finance.

Legal Entity

A legal entity is an organization that has legal rights and obligations, including the ability to enter into contracts and loans, sue and be sued, and is required to pay taxes.