The relevant range is defined as:
A) A period of time over which total costs do not change
B) A span of activity where both total fixed costs and variable cost per unit of activity remain constant
C) The volume of production over which step-wise fixed costs increase
D) The time period in which the level of production does not change

Question

Quizplus · Accepted Answer

The relevant range is a concept in cost accounting that refers to the span of activity within which the assumptions about fixed and variable costs per unit remain valid. This means that within this range, total fixed costs are expected to stay constant, and the variable cost per unit does not change with changes in the level of activity or production volume.

The Relevant Range Is Defined As