The Term "Relevant Range" Means the Range of Activity Over

question 61

Multiple Choice

The term "relevant range" means the range of activity over which:

• A)relevant costs are incurred.
• B)costs may fluctuate.
• C)production may vary.
• D)the assumptions about fixed and variable cost behavior are reasonably valid.

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Definitions:

Factory Overhead

Indirect manufacturing costs that are not directly tied to the production process, such as maintenance, utilities, and salaries of the manufacturing supervisors.

Job Order Cost System

An accounting method that tracks costs specifically associated with a job or project.

Custom Products

Goods that are tailored or made-to-order according to the specific requirements of customers.

Process Cost System

A financial recording method utilized to assign expenses to alike items that are manufactured on a large scale in an uninterrupted manner.