Past Relationships Between Cost and Activity May Not Be a Useful

question 152

Multiple Choice

Past relationships between cost and activity may not be a useful basis for estimating future costs

• A)if most of a company's costs are variable.
• B)the company is able to accurately estimate its cost behavior.
• C)if the cost is a mixed cost.
• D)if future activity levels are expected to be beyond the relevant range.

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Specific Topics

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