The level of activity within which fixed costs remain unchanged is called the:
A) extreme range.
B) relevant range.
C) activity range.
D) relevant range AND activity range.

Question

Quizplus · Accepted Answer

The relevant range is the level of activity in which fixed costs remain constant. Therefore, option B is the correct answer. Option A (extreme range) is not a commonly used term in management accounting. Option C (activity range) is too broad and does not specifically refer to the level of activity that affects fixed costs. Option D is incorrect as it is redundant - the relevant range and activity range are the same thing in this context.

The Level of Activity Within Which Fixed Costs Remain Unchanged