Which term refers to the range of activity within which a cost function is valid?
A) normal range
B) activity range
C) relevant range
D) discretionary range

Question

Quizplus · Accepted Answer

The relevant range refers to the range of activity or level of output within which a cost function is valid. Costs may not behave in a predictable manner outside of this range, so it is important for managers to be aware of the relevant range when making decisions. The other options (A, B, and D) are not commonly used terms in cost accounting to refer to the range of activity for a cost function.

Which Term Refers to the Range of Activity Within Which