The normal activity range in which there is relationship between activity and costs is classified as _____________?
Correct answer: C. relevant range
- A. cause range
- B. irrelevant range
- C. relevant range
- D. effective range
Explanation
Relevant range is the normal span of activity within which the assumed relationship between activity levels and costs remains valid. Outside this range, fixed or variable cost behaviour may change.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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