The term "relevant range" as used in cost accounting means the range over which
A)costs may fluctuate.
B)cost relationships are valid.
C)production may vary.
D)relevant costs are incurred.

Question

Quizplus · Accepted Answer

The relevant range is the range over which cost relationships are valid. This means that within the relevant range, changes in the level of activity (such as production or sales) will result in predictable changes in costs. Beyond the relevant range, cost relationships may become unpredictable and may not be valid. Therefore, the relevant range is an important concept in cost accounting as it helps managers understand how costs will behave as production levels change.

The Term "Relevant Range" as Used in Cost Accounting Means