Relevant range applies to _____.
A)the variable costs
B)fixed costs
C)both fixed and variable costs
D)cost driver activity levels

Question

Quizplus · Accepted Answer

Relevant range is the range of activity over which the assumptions made about cost behavior are valid. It applies to both fixed and variable costs because both types of costs have a certain range of activity over which they remain relatively constant or have a certain behavior pattern. Cost driver activity levels are part of determining the relevant range for each cost, but are not the sole focus of the concept.

Relevant Range Applies to _____