The vertical dashed line in graphical representation of cost function represents the ________?
Correct answer: C. relevant range
- A. cost representation
- B. irrelevant range
- C. relevant range
- D. graphical representation
Explanation
The vertical dashed boundaries in a cost-function graph mark the relevant range, the activity interval in which the assumed cost behavior is expected to hold. Outside this range, fixed and variable cost assumptions may change.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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