Which of the following terms describes the range of activity over which the firm expects a set of cost behaviors to be consistent?
A)irrelevant range.
B)relevant range.
C)short-range.
D)long-range.

Question

Quizplus · Accepted Answer

Relevant range refers to the range of activity over which the firm expects a set of cost behaviors to be consistent. It is the range in which certain costs behave in a particular manner, such as fixed costs remaining constant and variable costs changing proportionately with changes in activity levels. The irrelevant range is the range of activity levels in which assumptions about costs do not hold true, while short-range and long-range refer to time horizons rather than ranges of activity.

Which of the Following Terms Describes the Range of Activity