Fill in the Blank QuestionFill in the blank question.A cost remains unchanged when the volume of activity changes within the relevant range.

The appropriate term to fill in the blank is "fixed."

Explanation

A fixed cost refers to expenses that do not change with the volume of production or activity within a certain range, known as the relevant range. These costs remain constant regardless of how much or how little a company produces or sells. Examples of fixed costs include rent, salaries, and insurance. Understanding the nature of fixed costs is crucial for businesses as it allows for better budgeting and forecasting. When companies need to make decisions regarding pricing, production levels, or new investments, recognizing how fixed costs operate within the relevant range helps in analyzing the overall financial implications and contributes to effective financial management.

Thus, the completed sentence would read: "A fixed cost remains unchanged when the volume of activity changes within the relevant range."