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Within relevant range, cost function which cost does not change in narrow ranges of activity is called
Answer & Solution
Correct Answer:
Option
C
Within relevant range, cost function which cost does not change in narrow ranges of activity is called step variable cost function. A step variable cost is a cost that generally varies with the level of activity, but which tends to be incurred at certain discrete points and to involve large changes in amounts when such a point is reached.
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