Asked by
Deshae Taylor
on Oct 15, 2024Verified
A company's normal operating range,which excludes extremely high or low operating levels that are not likely to occur,is called the:
A) Margin of safety.
B) Contribution range.
C) Break-even point.
D) Relevant range.
E) High-low point.
Normal Operating Range
The range of operational activity levels within which a business or machine can efficiently and effectively operate.
Relevant Range
The range of activity within which the assumptions about fixed and variable cost behaviors hold true for a specific business.
- Understand the concept of the relevant range and its importance in cost behavior analysis.
Verified Answer
KA
Learning Objectives
- Understand the concept of the relevant range and its importance in cost behavior analysis.
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