The concept of the relevant range does not apply to variable costs.

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Parimal Patel · Accepted Answer

Final Answer : False, Explanation :  The concept of the relevant range applies to both fixed and variable costs. The relevant range refers to the range of activity levels over which a company expects its assumptions about costs and revenue to be valid. Below or above that range, different assumptions may apply and costs may change accordingly. For variable costs, the relevant range may include the range of units produced or services offered, for example.

The concept of the relevant range does not apply to variable costs.

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