Which one of following is not a reason to take into account the relevant range when estimating a cost?
A) The cost function is nearly linear within a relevant range
B) It is reasonable to assume that fixed costs remaining fixed in this range
C) It is reasonable to assume that variable costs remain constant in this range
D) We cannot make assumptions about linearity within a relevant range

Question

Quizplus · Accepted Answer

The relevant range is used precisely because it allows us to make assumptions about linearity and cost behavior, such as fixed costs remaining fixed and variable costs being constant.

Which One of Following Is Not a Reason to Take