What is the term for the range of activity within which a linear cost function is valid?
A)normal range
B)relevant range
C)activity range
D)fixed range

Question

Quizplus · Accepted Answer

The term for the range of activity within which a linear cost function is valid is called the relevant range. This is the range of activity where the cost behavior is expected to remain constant and the cost function is linear. It is important for managers to identify the relevant range when analyzing cost behavior as it helps in making accurate cost predictions and decisions. The other options such as normal range, activity range, and fixed range do not accurately describe the concept of relevant range.

What Is the Term for the Range of Activity Within