How Is the Relevant Range of Activity Related to CVP

question 64

Multiple Choice

How is the relevant range of activity related to CVP analysis?

• A) Managers are normally uncertain about the relevant range
• B) In CVP analysis, operations are assumed to be within the relevant range
• C) The relevant range is irrelevant to CVP analysis
• D) The relevant range affects costs but not revenues

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Definitions:

Deposit

A deposit is a sum of money placed into an account or given as security for a financial transaction.

Cash Balance

The amount of cash a company or an individual has available after all transactions have been accounted for.

Deposits

Sums of money placed into an account or with a financial institution for safekeeping and/or to earn interest.

Check Register

A logbook used by individuals to track checks issued, deposits made, and current balance in their checking account; a tool for personal financial management.