The concept of the relevant range does not apply when dealing with step variable costs

Name: The concept of the relevant range does not apply when dealing with step variable costs
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Question

Quizplus · Accepted Answer

The concept of the relevant range applies to all types of costs, including step variable costs, as it defines the range of activity within which the assumptions about cost behavior are valid. Step variable costs also change with activity levels, but in larger steps compared to strictly variable costs.

The Concept of the Relevant Range Does Not Apply When