The relevant range is important because:
A) CVP assumptions are not valid when operations are in the relevant range
B) Operations cannot be in any other range
C) Fixed and variable costs may change outside the relevant range
D) It describes the limits of operations

Question

Quizplus · Accepted Answer

The relevant range is important because fixed and variable costs may behave differently outside of this range, potentially changing in ways not predicted by models that assume constant per unit variable costs and total fixed costs.

The Relevant Range Is Important Because