What Does the Term "Relevant Range" Mean

question 30

Multiple Choice

What does the term "relevant range" mean?

• A) The range within which costs may fluctuate.
• B) The range within which a particular cost formula is valid.
• C) The range within which production may vary.
• D) The range within which the relevant costs are incurred.

---

Definitions:

Rate of Return

A measurement of the gain or loss on an investment over a specific period, expressed as a percentage.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle, often leading to delays and lower production efficiency.

Decorated Cakes

These are cakes that have been aesthetically designed and adorned with icing, frosting, and other edible decorative elements.