Unformatted text preview: - Total Cost = fixed cost + (Variable cost per unit x units produced) 1) Relevant range a. Range of volume b. ?? c. Relevant range is a specific activity level that is bounded by a minimum and maximum amount. Within that range of activities, certain revenue or cost levels can be expected to occur. fixed: costs that do NOT vary as volume changes (rent, depreciation, fire insurance) -variable: vary in total as volume changes (chlorine, distilled water, electricity) -mixed: flat base rate + per unit charge (machine rentals, usage charges, contracts)...
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- Fall '11
- volume changes, •Fire insurance