The term 'relevant range' refers to the levels of activity within which the assumptions relative to cost behavior are valid.

Name: The term 'relevant range' refers to the levels of activity within which the assumptions relative to cost behavior are valid.
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A change in activity will have a direct impact on total variable costs as they vary in direct proportion to changes in activity. Per unit variable costs will remain constant and will not be affected by changes in activity.

The Term 'Relevant Range' Refers to the Levels of Activity