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A decision tree can be cumbersome if there are
Relevant Range
The span of activity or volume in which the assumptions about fixed and variable cost behavior remain valid.
Variable Cost
A cost that changes in direct proportion to changes in the level of production or sales volume.
Total Fixed Cost
The sum of all constant expenses that a company incurs, regardless of the manufacturing or sales volume.
Relevant Range
The range of activity or volume over which the assumptions about fixed and variable cost behavior hold true.
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