The concept of the relevant range does not apply to variable costs.

Name: The concept of the relevant range does not apply to variable costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The relevant range applies to both fixed and variable costs. It refers to the range of activity levels in which a company expects to operate and where its assumptions about cost behavior (whether costs are variable or fixed) are valid. Beyond the relevant range, costs may behave differently due to capacity constraints or other factors.

The Concept of the Relevant Range Does Not Apply to Variable