Match each following terms with their correct description from the items listed below.
-The range of output over which the assumed cost relationship is valid
A)Relevant range
B)Cost behaviour
C)Driver
D)Variable cost
E)Fixed cost

Question

Quizplus · Accepted Answer

The relevant range is the range of output or level of activity over which the assumed cost relationship is valid. It is typically between the upper and lower limits of an organization's planned level of activity.

B) Cost behavior refers to how costs change in response to changes in activity levels.

C) A driver is any activity or factor that can cause a change in a cost.

D) Variable costs are costs that vary in direct proportion to changes in the level of activity.

E) Fixed costs are costs that do not change in response to changes in the level of activity within the relevant range.

Match Each Following Terms with Their Correct Description from the Items