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A Company's Relevant Range

Question 45

Multiple Choice

A company's relevant range


A) is unlimited with regards to production capacity.
B) has a lower limit depending on how much capacity the company has and how much the market demands the product.
C) is a band of activity with a specific relationship between activity levels and the cost being measured, where fixed cost remain fixed and variable costs per unit are constant.
D) is a band of activity with a specific relationship between activity levels and the cost being measured, where fixed cost can vary and variable costs are fixed.

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