Question 1
A band of normal activity or volume in which specific cost-volume relationships are maintained is referred to as the ________.
◦ average range
◦ cost-allocation range
◦ cost driver range
◦ relevant range
Question 2
At a plant where a union agreement sets annual salaries and conditions, annual labor costs usually ________.
◦ are considered a variable cost
◦ are considered a fixed cost
◦ depend on the scheduling of floor workers
◦ depend on the scheduling of production runs