The relevant range describes the:
A) level of activity where cost behaviour is assumed to be valid.
B) level of activity where an entity will operate.
C) level of activity where all costs can be predicted accurately.
D) physical area where an entity plans to conduct its business.

Question

Quizplus · Accepted Answer

The relevant range is the level of activity where cost behavior is assumed to be valid. In other words, it is the range of activity where a company can reasonably expect its costs to behave in a predictable manner. Beyond this range, cost behavior may change due to factors such as capacity constraints or economies of scale.

The Relevant Range Describes The