A term describing a firm's normal range of operating activities is:
A) Relevant range of operations.
B) Break-even level of operations.
C) Margin of safety of operations.
D) Relevant operating analysis.
E) High-low level of operations.

Question

Quizplus · Accepted Answer

The relevant range of operations is the normal range of a firm's operating activities where the firm's cost behavior patterns remain consistent. It is important to understand this range as it helps in making decisions related to pricing, production, and cost control.

A Term Describing a Firm's Normal Range of Operating Activities