Managers should consider which of the following when predicting costs at different volumes?
A)The relevant range of the cost
B)The type of cost behavior
C)Both of the above should be considered.
D)Neither of the above should be considered.

Question

Quizplus · Accepted Answer

Both the relevant range of the cost and the type of cost behavior should be considered when predicting costs at different volumes. The relevant range refers to the range of activity within which cost behavior assumptions are valid, while the type of cost behavior (such as variable, fixed, or mixed) influences how costs will change with changes in activity levels. Therefore, both of these factors are important to consider in predicting costs at different volumes.

Managers Should Consider Which of the Following When Predicting Costs