The relevant range can be commonly understood to mean
A)The normal range of output (activity) within which the company operates.
B)The range wherein fixed costs are always fixed.
C)The range wherein variable costs are strictly curvilinear.
D)The range wherein fixed costs are strictly proportional to the level of activity.

Question

Quizplus · Accepted Answer

The relevant range refers to the range of activity levels over which the company expects to operate. It is the normal range of production or sale volume, within which the company can maintain its expected level of efficiency and cost behavior. Fixed costs may still vary within this range, and variable costs may not strictly follow a curvilinear pattern. Therefore, option A is the most appropriate definition of the relevant range.

The Relevant Range Can Be Commonly Understood to Mean