PLEASE ANSWER ALLWrite “True” if the statement is true and write “False” if the statement is false.The relevant range of activity is the activity level at which the company makes the highestamount profits.Fixed costs per unit decline as the activity level increase within the relevant range of activity.A period cost is defined as the cost incurred when asset is used up or sold for the purpose ofgenerating revenue.Opportunity costs could be defined as the revenue lost when one alternative is not taken infavor of another alternative.

Fixed cost does not change with the change in output whereas, variable cost changes with the change…

Answered: The relevant range of activity is the…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PLEASE ANSWER ALL

Write “True” if the statement is true and write “False” if the statement is false.

The relevant range of activity is the activity level at which the company makes the highest
amount profits.
Fixed costs per unit decline as the activity level increase within the relevant range of activity.
A period cost is defined as the cost incurred when asset is used up or sold for the purpose of
generating revenue.
Opportunity costs could be defined as the revenue lost when one alternative is not taken in
favor of another alternative.

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