The level of activity within which fixed costs remain unchanged is called the:

A) extreme range.
B) relevant range.
C) activity range.
D) relevant range AND activity range.

Question

The level of activity within which fixed costs remain unchanged is called the:A)  extreme range.B)  relevant range.C)  activity range.D)  relevant range AND activity range.

Antonio Castro · Accepted Answer

Final Answer : B, Explanation :  The relevant range is the level of activity in which fixed costs remain constant. Therefore, option B is the correct answer. Option A (extreme range) is not a commonly used term in management accounting. Option C (activity range) is too broad and does not specifically refer to the level of activity that affects fixed costs. Option D is incorrect as it is redundant - the relevant range and activity range are the same thing in this context.

The level of activity within which fixed costs remain unchanged is called the:

A) extreme range.
B) relevant range.
C) activity range.
D) relevant range AND activity range.

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