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Commerce · Q494

Costing

Graduate and Post Graduate · Commerce · question 494

Q494

Vertical dashed line in graphical representation of cost function represents the

A.
cost representation
B.
irrelevant range
C.
relevant range
Answer
D.
graphical representation

Answer: Option C

Solution

Answer: Option C
Solution:
Vertical dashed line in graphical representation of cost function represents the relevant range. The relevant range refers to a specific activity level that is bounded by a minimum and maximum amount. Within the designated boundaries, certain revenue or expense levels can be expected to occur.