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Why is it necessary for a company to specify a relevant range of activity when making assumptions about cost behavior?

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Why is it necessary for a company to specify a relevant range of activity when making assumptions about cost behavior?

Answered Same Day Dec 22, 2021

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Robert answered on Dec 22 2021
121 Votes
Why is it necessary for a company to specify a relevant range of activity when
making assumptions about cost behavior?
Relevant range of activity determines the minimum and maximum amount. It sets the
limit to the maximum and minimum amount within which an expense can be incu
ed.
Within...
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