When There Is a Production Constraint, the Company Should First

question 12

Multiple Choice

When there is a production constraint, the company should first produce the product with:

• A)The highest contribution margin per unit
• B)The highest contribution margin ratio
• C)The highest revenue per unit
• D)The highest contribution margin per unit of the constrained resource

---

Definitions:

Quarterly Report

A financial statement issued by companies every quarter, detailing earnings, expenses, and net profits over that period.

Control Equation

A mathematical or conceptual representation used to understand or manage the variables influencing a system or process.

Substandard Performance

A level of work activity or output that falls below the set minimum standards or expectations of quality and efficiency in a professional setting.

Actual Performance

The real results or outcomes achieved by an individual, team, or organization, often compared against planned or expected performance.