Relevant Range: A company always expects a particular amount of revenue, which will be earned, and certain amount of cost, which a company will incur, therefore, this limit or boundary is termed as relevant range. Variable cost: This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa. Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition. To explain: Whether the relevant range is indispensable in cost behavior analysis.

Question

Want to see the full answer?

Answer 1

Question

Chapter 22, Problem 5Q

To determine

Relevant Range: A company always expects a particular amount of revenue, which will be earned, and certain amount of cost, which a company will incur, therefore, this limit or boundary is termed as relevant range.

Variable cost: This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output.

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

To explain: Whether the relevant range is indispensable in cost behavior analysis.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

I am looking for help with this general accounting question using proper accounting standards.

What was Vazya cost of goods sold for the period ?

I need help finding the accurate solution to this financial accounting problem with valid methods.

Answer 2

Question

Chapter 22, Problem 5Q

To determine

Relevant Range: A company always expects a particular amount of revenue, which will be earned, and certain amount of cost, which a company will incur, therefore, this limit or boundary is termed as relevant range.

Variable cost: This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output.

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

To explain: Whether the relevant range is indispensable in cost behavior analysis.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 22, Problem 5Q

To determine

Relevant Range: A company always expects a particular amount of revenue, which will be earned, and certain amount of cost, which a company will incur, therefore, this limit or boundary is termed as relevant range.

Variable cost: This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output.

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

To explain: Whether the relevant range is indispensable in cost behavior analysis.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 22, Problem 5Q

To determine

Relevant Range: A company always expects a particular amount of revenue, which will be earned, and certain amount of cost, which a company will incur, therefore, this limit or boundary is termed as relevant range.

Variable cost: This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output.

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

To explain: Whether the relevant range is indispensable in cost behavior analysis.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 22, Problem 5Q

To determine

Relevant Range: A company always expects a particular amount of revenue, which will be earned, and certain amount of cost, which a company will incur, therefore, this limit or boundary is termed as relevant range.

Variable cost: This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output.

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

To explain: Whether the relevant range is indispensable in cost behavior analysis.

Answer 6

Chapter 22, Problem 5Q

To determine

Relevant Range: A company always expects a particular amount of revenue, which will be earned, and certain amount of cost, which a company will incur, therefore, this limit or boundary is termed as relevant range.

Variable cost: This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output.

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

To explain: Whether the relevant range is indispensable in cost behavior analysis.

Answer 7

Chapter 22, Problem 5Q

To determine

Relevant Range: A company always expects a particular amount of revenue, which will be earned, and certain amount of cost, which a company will incur, therefore, this limit or boundary is termed as relevant range.

Variable cost: This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output.

Cost Behavior Analysis: It refers to analysis of cost which tends to change with change in any business condition.

To explain: Whether the relevant range is indispensable in cost behavior analysis.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 22 - Prob. 1Q Ch. 22 - Prob. 2Q Ch. 22 - Prob. 3Q Ch. 22 - Prob. 4Q Ch. 22 - Prob. 5Q Ch. 22 - Prob. 6Q Ch. 22 - Prob. 7Q Ch. 22 - Prob. 8Q Ch. 22 - 9. “Cost-volume-profit (CVP) analysis is based...Ch. 22 - Prob. 10Q

Concept explainers

Videos

Want to see the full answer?

Chapter 22 Solutions