Asked by
Richard Nason
on Nov 13, 2024
Verified
The relevant range of activity refers to the
A) geographical areas where the company plans to operate.
B) activity level where all costs are curvilinear.
C) levels of activity over which the company expects to operate.
D) level of activity where all costs are constant.
Relevant Range
The range of activity over which the assumptions about cost behavior for a company are valid.
Activity Level
A measure of the volume or intensity of operations in a business, often influencing costs and production capacity.
- Understand the concept of relevant range and its importance in cost behavior.
Verified Answer
VM
Learning Objectives
- Understand the concept of relevant range and its importance in cost behavior.