Why the concept of relevant range is important

Reference no: EM131342492

1. Some firms assign mixed costs to either the fixed or variable cost categories without using any formal methodology to separate them. Explain how this practice can be defended.

2. Explain the difference between committed and discretionary fixed costs. Give examples of each.

3. Explain why the concept of relevant range is important when dealing with step\ costs.

Reference no: EM131342492

Questions Cloud

Why is knowledge of cost behavior important : Why is knowledge of cost behavior important for managerial decision making? Give an example to illustrate your answer.- What is a driver? Give an example of a cost and its corresponding output measure or driver.

Whats his- is his madness a fake strategy : HUMAN-1111S 1303: Is Hamlet mad? Conceptions of madness range from that of anger to insane to conniving. What's his? Is his madness a fake strategy? For what purpose ? He tells Horatio just after seeing the ghost that he is going to put on an "an..

What is current yield : A bond with a par value of $1000 and a semi annual coupon has a nominal yield to maturity of 5.3% and a current price of $920 . if the bond has 6 years to maturity, what is its current yield?

What is the purpose of partial correlation : When a path diagram is shown, what information is conveyed by the arrows leading from one variable to another?

Why the concept of relevant range is important : Explain the difference between committed and discretionary fixed costs. Give examples of each.- Explain why the concept of relevant range is important when dealing with step\ costs.

Combination of health care : Clearly explain why health outcome is so much more than a combination of health care, individual behaviors, and/or genetics?

Describe the cost formula for a strictly fixed cost : Why do mixed costs pose a problem when it comes to classifying costs into fixed and variable categories?- Describe the cost formula for a strictly fixed cost such as depreciation of $15,000 per year.

Main pressure areas of the northern hemisphere : 1. Describe the four main pressure areas of the Northern Hemisphere and discuss their effects on major wind patterns. 2. Describe and explain the formation and effects of the monsoon winds of southern Asia

What is the scattergraph method and why is it used : What is the scattergraph method, and why is it used? Why is a scattergraph a good first step in separating mixed costs into their fixed and variable components?

User Account

All Pages