In defining a cost as fixed, the accountant must consider
A) the variable costs.
B) the contribution margin.
C) the relevant range.
D) projected sales revenue.

Question

Quizplus · Accepted Answer

When defining a cost as fixed, the accountant must consider the relevant range, which refers to the range of production or sales volume in which the assumptions about cost behavior are valid. Variable costs, contribution margin, and projected sales revenue are not necessarily relevant to determining whether a cost is fixed or not.

In Defining a Cost as Fixed, the Accountant Must Consider