Relevant Range Is the Range of Activity (Volume)over Which Total

question 143

True/False

Relevant range is the range of activity (volume)over which total fixed costs and variable costs per unit can be assumed to remain the same.

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Definitions:

Sales Proportion

The ratio or percentage of a product's sales in relation to total sales of all products, indicating its market performance.

Cost-Volume-Profit Graph

A visual representation that shows how changes in cost and volume affect a company's profit.

Step-Wise Costs

Costs that remain fixed over a range of activity but will increase in a step-like manner when a certain threshold is reached.

Break-Even Points

The volume of production or sales at which total revenues equal total expenses, resulting in no net profit or loss, used for financial analysis and planning.