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 drive range.
D)relevant range.
E)driving range.

Question

Quizplus · Accepted Answer

The relevant range is the band of normal activity or volume in which specific cost-volume relationships are maintained. It is important to understand the relevant range in order to make accurate cost predictions and budgeting decisions. Options A, B, C, and E are not commonly used accounting terms.

A Band of Normal Activity or Volume in Which Specific