The range of the cost driver in which the actual value of the cost driver is expected to fall is called the:
A)Actual cost range.
B)Driver range.
C)Activity range.
D)Expected cost range.
E)Relevant range.

Question

Quizplus · Accepted Answer

The relevant range is defined as the range of the cost driver over which the assumptions made about cost behavior are valid. It is the range of activity within which the company expects to operate during a given period of time. The relevant range is important because it affects the behavior of costs and the ability of management to control costs.

The Range of the Cost Driver in Which the Actual