Question

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

Answer 1

Answer:

The correct answer is D

Explanation:

Relevant range is the range which is defined as the particular activity that is bounded through a maximum as well as minimum amount. Within the boundaries that are designated, certain expense or revenue which can be expected to incur.

And from outside the relevant range, the expense and revenues will differ from the expected amount.

So, the range of normal operating of the company that exclude the extremely low as well as high operating levels which will not occur, is referred to as the relevant range.