Craft,Inc.normally produces between 120,000 and 150,000 units each year.Producing more than 150,000 units alters the company's cost s
A) differential range.
B) median range.
C) relevant range.
D) leverage range.

Question

Quizplus · Accepted Answer

The relevant range is the range of activity within which the company expects to operate in the short term, such that the behaviour of its costs and revenues can be reasonably predicted. In this case, the relevant range for Craft, Inc. is between 120,000 and 150,000 units as producing more than 150,000 units would alter the company's costs.

Craft,IncNormally Produces Between 120,000 and 150,000 Units Each Year