Which of the Following Is a Resource Constraint

question 76

Multiple Choice

Which of the following is a resource constraint?

• A)Dollars of profit generated
• B)Sales commissions
• C)Cost per unit
• D)Pounds of materials for production

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Definitions:

Credit-Granting Policies

Guidelines established by lenders to determine the criteria and conditions under which credit is extended to borrowers.

Vertical Analysis

An accounting method where each entry in a financial statement is listed as a percentage of another item, typically used for comparing companies of different sizes or assessing trends within a single company over time.

Cost of Goods Sold

The direct expenses related to the manufacturing of products that a company sells.

Current Ratio

A liquidity measure that evaluates a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.