The relevant range is the band of volume where total fixed and variable costs per unit remain constant.

Question

Quizplus · Accepted Answer

The relevant range is the volume range where the total fixed costs and variable costs per unit remain constant. Beyond this range, fixed costs may increase or decrease, and variable costs may fluctuate due to factors such as economies of scale, changes in technology, or shifts in the cost of raw materials. It is important for managers to identify and understand the relevant range in order to accurately predict costs and plan production levels.

The Relevant Range Is the Band of Volume Where Total