The relevant range is important because
A)it specifies which costs should be used for a given decision.
B)it provides a basis for determining a range of acceptable cost alternatives.
C)it is required to determine inventoriable costs under Canadian GAAP.
D)it specifies the limits beyond which the relationship of cost to cost drivers may not be valid.
E)it determines the time horizon.

Question

Quizplus · Accepted Answer

The relevant range specifies the limits within which cost behaviors (such as fixed and variable costs) are expected to hold true. Beyond this range, the cost relationships may change, making it crucial for accurate cost analysis and decision-making.

The Relevant Range Is Important Because