Which of the following terms describe the level of activity over which the firm expects a set of cost behaviors to be consistent?
A)marginal activity.
B)range of opportunity.
C)relevant range.
D)margin of safety.

Question

Quizplus · Accepted Answer

The relevant range is the level of activity over which the firm expects a set of cost behaviors to be consistent. The other terms are not related to this concept. Marginal activity refers to a small change in the level of activity, range of opportunity is not a commonly used term in accounting or finance, and margin of safety is the difference between actual or expected sales and breakeven sales.

Which of the Following Terms Describe the Level of Activity