Question

The relevant range is that range of activity:

a. where the firm will earn a profit.
b. where expected results are abnormally high.
c. where units produced equal units sold.
d. where management expects the firm to operate.
e. where a company achieves its maximum efficiency.

Answer 1

Answer:

c. where units produced equal units sold.

Explanation:

• A relevant range refers to the range of the activity were the levels are bounded by the minimum and a maximum range of amount within the designated boundaries.

• Certain amount of the expenses can occur and outside this range, the difference are most likely to occur r that differs from the actual amount and refers to the normal range of the volumes of activity are fixed.