Which of the Following Are an Option to Relax a Constraint

question 157

Multiple Choice

Which of the following are an option to relax a constraint?

• A) Reject customer orders.
• B) Purchase goods or services from an outside suppliers
• C) Increase internal capacity
• D) b and c

Understand the role of direct and indirect costs in production.

Explore the financial and managerial accounting principles.

Understand the components and preparation of the statement of cost of goods manufactured.

Analyze the effects of inventory changes on cost of goods sold and net income.

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Definitions:

Management Accounting

The method of creating management reports and financial statements that offer precise and current financial and statistical data needed by managers for making daily and short-term choices.

Analytical Accounting

The practice of using financial and non-financial data to uncover trends and insights for business decision-making.

Planning

The process of making strategic decisions and setting objectives and goals for future organizational performance.

Goals And Objectives

The targets and specific outcomes that individuals or organizations aim to achieve through their actions and strategies.