The range of activity within which a linear cost function is valid is called the
A)normal range.
B)relevant range.
C)activity range.
D)none of these.

Question

Quizplus · Accepted Answer

The relevant range is the range of activity within which a linear cost function is valid. It is important for businesses to identify their relevant range as it helps in making accurate cost predictions and determining profit margins. The other options (A, C, D) are not common terms used in cost accounting.

The Range of Activity Within Which a Linear Cost Function