Within the relevant range of activity, costs:
A) can be estimated with reasonable accuracy.
B) can be expected to change radically.
C) exhibit decreasing marginal cost patterns.
D) exhibit increasing marginal cost patterns.
E) cannot be estimated satisfactorily.

Question

Quizplus · Accepted Answer

Within the relevant range of activity, costs can indeed be estimated with reasonable accuracy. This is because the relevant range is defined as the band of activity where assumptions about cost behavior hold true, allowing for accurate cost predictions.

Within the Relevant Range of Activity, Costs