6 THE LINEAR ASSUMPTION IS REASONABLY SALES VOLUME, PRODUCTION VOLUM...

5- - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE

5-6

The linear assumption is reasonably

sales volume, production volume, or orders

valid providing that the cost formula is used only

processed.

within the relevant range.

b.

Relevant range: The relevant range is the

range of activity within which assumptions