Which of the statements regarding the relevant range for a business is true?
A) No relationship exists between the relevant range for a business and fixed costs and capacity.
B) Within the relevant range for a business, the fixed costs and capacity will always change with the change in the activity level.
C) Within the relevant range for a business, fixed costs stay fixed or constant when the activity level changes.
D) Within the relevant range for a business, variable costs stay fixed or constant when the activity level changes.

Question

Quizplus · Accepted Answer

Within the relevant range, fixed costs remain constant despite changes in the activity level, while variable costs change with the activity level.

Which of the Statements Regarding the Relevant Range for a Business