Asked by Rehana Shammi on May 03, 2024

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Verified

Most operating decisions of management focus on a narrow range of activity called the ______ of production.

A) relevant range
B) strategic level
C) optimal level
D) tactical operating level

Relevant Range

The spectrum of operations within which the behaviors of variable and fixed costs are considered accurate.

Operating Decisions

Definition: Decisions made by management related to the day-to-day operations of a company, including costs, production, and pricing strategies.

Strategic Level

A high-level perspective in organizational planning that focuses on long-term goals and overall direction of an organization.

  • Understand and apply the concept of the relevant range in management decisions.
verifed

Verified Answer

MC
Mahak ChhajedMay 05, 2024
Final Answer :
A
Explanation :
The relevant range of production refers to the level of activity within which the assumptions about fixed and variable costs are valid. Management's operating decisions often focus on this range to ensure cost behaviors are predictable and aligned with production levels.