Most operating decisions of management focus on a narrow range of activity called the
A) relevant range of production
B) strategic level of production
C) optimal level of production
D) tactical operating level of production

Question

Quizplus · Accepted Answer

The relevant range of production refers to the span of activity or volume of production over which the assumptions about cost behavior (fixed and variable costs) hold true. Management's operating decisions typically focus on this range because it is where cost behaviors are predictable and decisions can be more accurately informed.

Most Operating Decisions of Management Focus on a Narrow Range