The relevant range applies to ________.
A) variable costs only
B) fixed costs only
C) fixed costs and variable costs
D) none of the above

Question

Quizplus · Accepted Answer

Relevant range applies to both fixed and variable costs. It is the range of activity or level of output over which the assumptions made about cost behavior are valid. Beyond this range, cost behavior may change due to factors such as capacity constraints or economies of scale. Therefore, the relevant range is important in making managerial decisions related to costs and pricing.

The Relevant Range Applies to ________