Question

The relevant range is the range of activity: Multiple Choice where costs follow a curvilinear pattern. where variable costs do not change in total. where fixed costs do not exist. within which the assumptions made about cost behavior are reasonably valid.

Answer 1

Answer:

Option D Within which the assumptions made about cost behavior are reasonably valid.

Explanation:

The relevant range in which the increase and decrease of variable costs shows a linear relation and fixed costs remains fixed is relevant range of activity. And over this range, the company expects to operate which means its maximum production is less than the point after which the costs starts showing less linear relation.