Cost behaviors and estimates are valid only within the normal level of operating activity.This range is referred to as the
A)normal range.
B)activity range.
C)relevant range.
D)cost range.

Question

Quizplus · Accepted Answer

The relevant range is the range of operations over which a company expects to operate and generate revenue. Cost behaviors and estimates are valid only within this range, also referred to as the normal range of operating activity. Beyond this range, cost behavior might change, and it may require updated estimates to reflect the new situation. Therefore, option C is the correct answer. Options A, B, and D are not the appropriate terms to describe this range.

Cost Behaviors and Estimates Are Valid Only Within the Normal