Final answer:
The correct term for the range of activity reflecting a company's normal operating range is the Relevant Range. This concept is crucial in cost accounting where cost behavior assumptions are valid.
Step-by-step explanation:
The assumed range of activity that reflects the company's normal operating range is referred to as the Relevant Range. This is an important concept in cost accounting as it pertains to the range of activity within which the assumptions about variable and fixed cost behavior are valid.
Costs are only predictable and behave in the anticipated manner when within this range. Outside of the relevant range, costs may not behave as expected, potentially impacting business decisions and financial forecasts.
The relevant range is the assumed range of activity that reflects a company's normal operating range in managerial accounting.
The assumed range of activity that reflects the company's normal operating range is referred to as the Relevant Range. This term is commonly used in managerial accounting to describe the range of activity within which certain costs and business decisions remain valid. It is important for companies to understand their relevant range in order to make informed decisions and plan for future operations.
Therefore, the correct option is d) Relevant Range