The relevant range is:
A)the range in which costs remain variable.
B)the range of activity over which we expect our assumptions about cost behavior to hold true.
C)the range of activity based on the volume-based cost driver.
D)the range in which costs remain fixed.

Question

Quizplus · Accepted Answer

The relevant range is the range of activity over which we expect our assumptions about cost behavior to hold true. It is important because costs may behave differently outside of this range, which can lead to inaccurate cost predictions and decision-making.

The Relevant Range Is