contestada

The relevant range of activity refers to the_______________.

a. geographical areas where the company plans to operate.
b. activity level where all costs are curvilinear.
c. levels of activity over which the company expects to operate.
d. level of activity where all costs are constant.

Respuesta :

Answer:

The correct answer is option c.

Explanation:

The relevant range of activity can be defined as a specific level of activity, bounded by a maximum and minimum level. In this range, the customer based behavior remains valid. The revenue, costs, etc are at certain expected levels.  

Outside of this range, revenue earned and costs incurred will differ from the expected amount. A company is expected to operate in this range.