Cost estimate made using activity levels outside the relevant: a. Many results in poor decisions b. Are more accurate c. Mean that cost behavior patterns are accurate at all levels of activity. d. Meant the cost estimate will be relevant e. None of these.

Cost estimate made using activity levels outside the relevant: a. Many results in poor decisions b. Are more accurate c. Mean that cost behavior patterns are accurate at all levels of activity. d. Meant the cost estimate will be relevant e. None of these.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

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If costs are not responsive to changes in activity level, then these costs can be best described as a. mixed. b. flexible. c. variable. d. fixed.
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If the organization operates at an activity level outside the relevant range, any cost predictions based on data from the relevant range may not be very accurate. True or False?