Barbara Corporation prepares ready-to-eat meals. Its cost structure remains constant between 15,000 and 40,000 meals. These upper and lower limits are known as a

Question

Quizplus · Accepted Answer

The relevant range of activity refers to the range of activity within which the assumptions about variable and fixed cost behavior hold true. For Barbara Corporation, this is between 15,000 and 40,000 meals, where its cost structure remains constant.

Barbara Corporation Prepares Ready-To-Eat Meals