When Two or More Constraints Conflict with One Another, We

question 61

True/False

When two or more constraints conflict with one another, we have a condition called unboundedness.

---

Definitions:

Operating at Capacity

A condition in which a company or facility is producing at the maximum output possible within the constraints of current resources and technology.

Selling Price

The amount for which a product or service is sold to a customer.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Cost Center

A department or unit within an organization to which costs can be allocated, but that does not directly generate revenue.