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SashulF [63]
4 years ago
14

Managers always need to keep their relevant range in mind when predicting total costs. The relevant range is the band of volume

where total fixed costs remain constant as well as where variable cost per unit remains constant. A change in the relevant range can lead to a change in cost behavior. Increasing the relevant range can turn a:
A) Fixed cost into a step fixed costB) Fixed cost into a variable costC) Variable cost into a fixed costD) Step cost into a mixed cost
Business
1 answer:
Mice21 [21]4 years ago
6 0

Answer:

A) Fixed cost into a step fixed cost

Explanation:

As mentioned, a change in the relevant range can lead to a change in cost behavior. By increasing the relevant range, it can turn the fixed cost into a step fixed cost.

The fixed costs of a certain company will always be fixed only in a certain level of relevant range. But when a certain activity level will increase or decrease beyond the threshold, fixed costs change into step fixed costs.

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The continuous falling price level is called inflation.<br> True or false?
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True

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When it start failling it is still true.

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3 0
3 years ago
A bank has excess reserves of $1,000,000 and makes a new loan for $500,000. If the bank faces a 10% required reserve ratio, by h
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3 0
3 years ago
A company, which is currently operating at full capacity, has sales of $2,480, current assets of $820, current liabilities of $5
forsale [732]

Answer:

$61.60

Explanation:

Equity funding need =  Projected assets - Projected liabilities - Current equity - Projected increase in retained earnings

Equity funding need = $2,739 - $561 -  $1,980 - $136.40

Equity funding need = $61.60

<u>Workings</u>

Projected assets = (Current assets + Fixed assets) * 1.10 = 820+1,670 * 1.10 = $2,739

Projected liabilities = Current liabilities * 1.10 = 510 * 1.10 = $561

Current equity = Current assets + Fixed assets - Current liabilities = 820 + 1,670 - 510 = $1,980

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5 0
4 years ago
_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is les
PolarNik [594]

Answer: Tactical planning

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Tactical plans are required to help teams to accomplish their goals by utilizing the steps that are clearly defined through short term outcomes and it is usually less than a year.

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