1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
notsponge [240]
3 years ago
14

Cost predictions should be confined to the relevant range, which is the range of activity expected for the organization. If the

organization operates at an activity level outside the relevant range, any cost predictions based on data from the relevant range may not be very accurate. What happens if outliers are present in your data?
Business
1 answer:
Lostsunrise [7]3 years ago
6 0

Answer:

TRUE

Explanation:

In managerial accounting, there are 2 meanings and significance of a relevant range.

1. The relevant range is the level of activity (range) that a firm is operating i.e. the volume of its production activity.

2. The relevant range is the level of activity within which certain cost behaviors are true i.e. whether the costs by their characteristics are fixed or variable.

Beyond a relevant range, cost behaviors could change in 2 ways

1. Variable costs could start manifesting the characteristic of semi variable costs or mixed costs or

2. Fixed costs could become stepped and become stepped fixed costs.

Therefore cost estimations which is based on cost behavior are only VALID within the relevant range. It is only within a given level of output that certain cost estimations holds true.

You might be interested in
If jasmine sleeps for 12 hours each night and takes two naps during the day, jasmine is most likely to be:
saw5 [17]

Jasmine is a hyposomniac

7 0
3 years ago
When product designers use computer-aided design (CAD) software to produce technical drawings in three dimensions, they are usin
LiRa [457]
When product designers use computer-aided design (CAD) software to produce technical drawings in three dimensions, they are using: Utility software
6 0
3 years ago
Which law signed by president george w. bush, allowed for more economic freedom amongst different kinds of businesses on the 401
natima [27]

Economic Growth and Tax Relief Act law signed by President George w. bush, allowed for more economic freedom amongst different kinds of businesses on the 401(k)

A standard definition of economics might describe it as a social science focused on the satisfaction of needs and desires through the allocation of scarce resources with alternative uses. Economics can be said to be the study of scarcity and choice.

In its simplest and most concise definition, economics is the study of how societies use their limited resources. Economics is the social science of producing, distributing, and consuming goods and services.

Example: When the corn crop increases, the farmer reduces the price of the crop so that the product can be sold. When supply exceeds demand, meaning too much corn is needed to feed the people of the country, the produce is forced to waste and farmers lose production costs.

Learn more about economics here

brainly.com/question/17996535

#SPJ4

6 0
1 year ago
Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as fo
dusya [7]

Answer:

It need  sales figure of 22,125 units per year to break even considering their currnent contribution marign and fixed cost.

Explanation:

fixed cost per year:

equipment lease cost: 288,000

other overhead cost  <u>     48,300   </u>

total fixed cost              336,300

contribution per unit:

sales revenue - variable cost

39.75 - 14.55 = 15.20

each units generates $15.20 dollar we need to save up for  336,300 dollars

break even point:

336,300 / 15.20 = 22,125 units

6 0
3 years ago
Which of the following is a critical dilemma when implementing fiscal policy in reference to timing lags?
Pepsi [2]

Answer: Option C

Explanation: In simple words, critical dilemma refers to the confusions and problems that may arise and are pretty hard to solve.

While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.

This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.

8 0
3 years ago
Other questions:
  • A user has a credit card–sized card used to prove her identity with a pin. what is this card called?
    9·1 answer
  • A company has $317,000 in credit sales. The company uses the allowance method of determining uncollectible accounts expense. The
    14·1 answer
  • Kilgore Company makes and sells a single product. Kilgore incurred the following costs in its most recent fiscal year: Cost Item
    12·1 answer
  • Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.8.
    7·1 answer
  • The presence of _____________________ in transactions involving goods can easily cause a ______________________ if the result is
    14·1 answer
  • Cement Works has a beginning cash balance for the quarter of $1,211. The company requires a minimum cash balance of $1,200 and u
    5·1 answer
  • How can knowledge of call options help a financial manager to better understand warrants and convertibles
    7·1 answer
  • Exercise 9-16
    11·1 answer
  • The primary purpose of measuring the overall level of prices in the economy is to
    5·1 answer
  • Red October Company has 2,000 shares of 6%, $100 par cumulative preferred stock outstanding at December 31, 2016. No dividends h
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!