Examlex
Which one of the following is not an external user of financial statements?
Relevant Range
The relevant range is a level of activity within which assumptions about variable and fixed cost behaviors are valid, used for budgeting and forecasting.
Activity Level
A measure of the volume of work or operations in a company, influencing variable costs and often used for budgeting and performance evaluation.
Fixed Cost
Costs that do not vary with the level of production or sales, such as rent, insurance, and salaries of permanent staff.
Relevant Range
The range of activity within which the assumptions about fixed and variable cost behavior are valid.
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