A relevant range is the range of activity within which assumptions about cost behavior are valid. It is the range of activity over which the cost is expected to change in a predictable manner.
A vertical dashed line in a graphical representation of a cost function represents the relevant range. This is because the cost function is only valid within the relevant range. Outside
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of the relevant range, the cost function may not be accurate.
Option A is incorrect because the vertical dashed line does not represent the cost representation. The cost representation is the entire graph, not just the vertical dashed line.
Option B is incorrect because the vertical dashed line does not represent the irrelevant range. The irrelevant range is the range of activity outside of which the cost is not relevant to decision-making.
Option D is incorrect because the vertical dashed line does not represent the graphical representation. The graphical representation is the entire graph, not just the vertical dashed line.