The relevant range refers to the activity range over which:

Question

Quizplus · Accepted Answer

The relevant range is the range of production or sales activity over which the fixed and variable cost relationships remain the same. Therefore, option A is the correct choice as it defines the relevant range accurately. Option B is not correct because variable costs per unit may either increase or decrease depending on the level of production. Option C is also not correct because fixed costs remain the same regardless of the level of production. Option D is incorrect because total variable costs may change depending on the level of production.

The Relevant Range Refers to the Activity Range Over Which