1. The term relevant range as used in cost accounting means the range over which
   1. cost relationships are valid
   2. production may vary
   3. costs may fluctuate
   4. relevant costs are incurred
2. Cost-volume-profit analysis assumes that over the relevant range total.
   1. Revenues are linear.
   2. Variable costs are nonlinear.
   3. Costs are unchanged.
   4. Fixed costs are nonlinear.
3. Breakeven analysis assumes linearity over the relevant range with respect to

	Total costs	Total revenue
A.	Yes	No
B.	Yes	Yes
C.	No	Yes
D.	No	No

4. An assembly plant accumulates its variable and fixed manufacturing overhead costs in a single cost pool, which is then applied to work-in-process using a single application base. The assembly plant management wants to estimate the magnitude of the total manufacturing overhead costs for different volume levels of the application activity base using a flexible budget formula. If there is an increase in the application activity base that is within the relevant range of activity for the assembly plant, which one of the following relationship regarding variable and fixed costs is correct?

A. The variable cost per unit is constant, and the total fixed costs decrease.

B. The variable cost per unit is constant, and the total fixed costs increase.

C. The variable cost per unit and the total fixed costs remain constant.

D. The variable cost per unit increases, and the total fixed costs remain constant.

Explain per item number the correct answers i have given in multiple choice!