The General Rule for Relaxing a Short Term Constraint for Direct

question 60

True/False

The general rule for relaxing a short term constraint for direct materials is that managers would be willing to pay what they are already paying as well as some or all of the contribution margin per unit of the constrained resource.

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Definitions:

Labour-intensive

Describing a process or industry that requires a large amount of manual work relative to capital or machinery.

Skilled Labour

Refers to workers who have specialized training or skills, typically acquired through education or on-the-job experience, necessary for performing specific tasks or jobs.

Quality Output

The degree to which a product or service meets specified requirements and satisfies customer expectations.

Cypress Packing Boxes

Specialized packing boxes made from cypress wood, known for its durability and resistance to decay.