A band of normal activity or volume in which specific cost-volume relationships are maintained is referred to as the ________.
A) average range
B) cost-allocation range
C) cost driver range
D) relevant range

Question

Quizplus · Accepted Answer

The term "relevant range" refers to the band of normal activity or volume in which the cost-volume relationships are valid. It is important for managers to be aware of the relevant range in order to make accurate and informed decisions about their operations. Option A, "average range," is not a term commonly used in accounting or finance. Option B, "cost-allocation range," is similar to relevant range but specifically refers to the range of activity or volume used to allocate costs to different products, departments, or activities. Option C, "cost driver range," is also not a commonly used term in accounting or finance.

A Band of Normal Activity or Volume in Which Specific