Why is identification of a relevant range important?
a. It is required under GAAP.
b. Cost behavior outside of the relevant range is not linear, which distorts CVP analysis.
c. It directly impacts the number of units of product a customer buys.
d. It is a cost that is incurred by a company that must be accounted for.
Answer: b. Cost behavior outside of the relevant range is not linear, which distorts CVP analysis.
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Brookside Market recently traded in store fixtures
The exchange had commercial substance. The old fixtures had a cost of $72,000 and accumulated depreciation of $66,000. Brookside paid $100,000 for the new store fixtures. These new fixtures had a market value of $127,000. There is a loss of $21,000 on this exchange. Indicate whether the statement is true or false
The new country which joined the EU at the beginning of 2015 is:
A) Slovakia. B) Lithuania. C) Latvia. D) Slovenia. E) Cyprus.