What is the relevant range? What role does the relevant-range concept play in explaining how costs behave? A. The relevant range is the band of normal activity level or volume in which there is an abnormal relationship between the level of activity or volume and the variable cost per unit. Costs are described as relevant or irrelevant with respect to a particular relevant range. B. The relevant range is the band of normal activity level or volume in which there is no relationship between the level of activity or volume and the cost in question. Costs are described as relevant or irrelevant with respect to a particular relevant range. C. The relevant range is the band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question. Costs are described as variable or fixed with respect to a particular relevant range. D. The relevant range is the band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the related fixed costs. Costs are described as direct or indirect with respect to a particular relevant range.

With in this range the expenses and revenues have a certain relationship with the volume of activity. Outside the range the expenses, the revenues and expenses are likely to differ from what is expected.

This range is also referred as the normal range or volume of activity. Within this range, the fixed costs will remain the same. The variable cost per unit will also remain the same.

A company is expected to operate within this range.