Which of the following statements is correct about relevant range?
A)The relevant range only applies to fixed costs in the context of "step costs."
B)The relevant range determines production levels for the company.
C)The relevant range helps managers make decisions based on normal operations,but the relevant range is not prescriptive beyond the range.
D)The relevant range is useful for operations managers,but not necessarily for cost managers within a production facility.

Question

Quizplus · Accepted Answer

The relevant range helps managers make decisions based on normal operations, but it is not prescriptive beyond the range. It applies to both fixed and variable costs, and is useful for both operations and cost managers. However, it does not determine production levels, as those are determined by factors such as customer demand and capacity constraints.

Which of the Following Statements Is Correct About Relevant Range