A company's normal operating range, which excludes extremely high and low volumes 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.

Question

Quizplus · Accepted Answer

The relevant range is the level of activity that is expected to occur and is within a company's normal operating range. It excludes extremely high and low volumes that are not likely to occur. The other options are not accurate definitions of a company's normal operating range.

A Company's Normal Operating Range, Which Excludes Extremely High and Low