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Why is the cost function for the flexible budget only applicable within the relevant range?...

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Question

Accounting

Why is the cost function for the flexible budget only applicable within the relevant range?

Select one:

A. Management does not expect to have production levels outside of the relevant range

B. Some costs will behave differently outside of the relevant range

C. The cost levels affect the range of production levels available

D. Only the static budget matters when compared with results outside of the relevant range

E. None of the above

THE ANSWER IS NOT C

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