What Occurs When Resources Reach Full Capacity and Cannot Handle

question 65

Multiple Choice

What occurs when resources reach full capacity and cannot handle any additional demands limiting throughput and impeding operations?

• A) Bottlenecks
• B) Redundancy
• C) Automation
• D) Streamlining

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Definitions:

Variable Costing

An accounting method that only includes direct variable costs in product cost calculations, excluding fixed manufacturing overhead.

Absorption Costing

An accounting practice that includes every cost associated with manufacturing, like direct materials, direct labor, and variable as well as fixed overhead expenditures, in determining a product's cost.

Units Produced

A measure of the total number of complete units manufactured or completed in a given period.

Units Sold

The total quantity of products that a company has sold to its customers during a particular time frame.