Cost behaviors and estimates are valid only within the normal level of operating activity.This range is referred to as the
A)Normal range
B)Activity range
C)Relevant range
D)Cost range

Question

Quizplus · Accepted Answer

The relevant range is the range of activity in which a company expects to operate and is the level where cost behavior patterns are reasonably predictable. This is the only option that accurately reflects this concept. The normal and activity ranges are not typically used in cost accounting, and cost range is not a commonly used term.

Cost Behaviors and Estimates Are Valid Only Within the Normal