Question: why is identification of the relevant range important Why is identification of the relevant range important? The relevant range is a cost that is incurred

why is identification of the relevant range important

Why is identification of the relevant range important? The relevant range is a cost that is incurred by a company that must be accounted for. Cost behavior outside of the relevant range is not linear, which distorts CVP analysis. Identification of the relevant range is required under GAAP. The relevant range directly impacts the quantity of units of product a customer buys

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