Relevant range
A)is the range of activity over which our assumptions about cost behavior are true.
B)only applies to fixed costs.
C)is defined as total sales minus break-even sales.
D)increases in total as the activity level increases.

Question

Quizplus · Accepted Answer

The relevant range is the range of activity over which our assumptions about cost behavior are true. It applies to both fixed and variable costs, and as activity level increases, the relevant range also increases. Break-even sales and total sales are not factors in determining the relevant range.

Relevant Range