Why Is Identification of a Relevant Range Important

question 201

Multiple Choice

Why is identification of a relevant range important?

• A) It is required under GAAP.
• B) Cost behavior outside of the relevant range is not linear which distorts CVP analysis.
• C) It directly impacts the number of units of product a customer buys.
• D) It is a cost that is incurred by a company that must be accounted for.

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