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Relevant range

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Definition of Relevant range

Relevant Range Image 1

Relevant range

The upper and lower levels of activity within which the business expects to be operating within the short-term planning horizon (the budget period).


relevant range

the specified range of activity over which a
variable cost per unit remains constant or a fixed cost remains
fixed in total; it is generally assumed to be the normal
operating range of the organization



Related Terms:

Fixed costs

Costs that do not change with increases or decreases in the volume of goods or services
produced, within the relevant range.


high-low method

a technique used to determine the fixed
and variable portions of a mixed cost; it uses only the highest
and lowest levels of activity within the relevant range


Closing range

Also known as the range. The high and low prices, or bids and offers, recorded during the
period designated as the official close. Related: settlement price.


Cost company arrangement

Arrangement whereby the shareholders of a project receive output free of
charge but agree to pay all operating and financing charges of the project.



dual pricing arrangement

a transfer pricing system that allows
a selling division to record the transfer of goods or
services at one price (e.g., a market or negotiated market
price) and a buying division to record the transfer at another
price (e.g., a cost-based amount)


Range

The high and low prices, or high and low bids and offers recorded during a specified time.


Relevant Range Image 2

Range forward

A forward exchange rate contract that places upper and lower bounds on the cost of foreign exchange.


Relevant cost

The cost that is relevant to a particular decision – future, incremental cash flows.


relevant cost

a cost that is logically associated with a specific problem or decision


relevant costing

a process that compares, to the extent possible
and practical, the incremental revenues and incremental costs of alternative decisions


Target zone arrangement

A monetary system under which countries pledge to maintain their exchange rates
within a specific margin around agreed-upon, fixed central exchange rates.


Trading range

The difference between the high and low prices traded during a period of time;
with commodities, the high/low price limit established by the exchange for a specific commodity for any one day's trading.



 

 

 

 

 

 

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