When There Is a Constraint on How Many Units Can

question 88

True/False

When there is a constraint on how many units can be produced, the focus shifts from contribution margin per unit to contribution margin per unit of the constraint.

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Definitions:

External Locus

A belief system where individuals perceive the outcomes of their actions as being controlled by external forces or fate rather than their own efforts.

False Consensus

A cognitive bias where individuals overestimate how much others share their beliefs, values, or behaviors.

Spotlight Effect

The spotlight effect is the belief that others observe us more closely than they actually do, overestimating the extent to which our actions and appearance are noted by others.

Lump Sum Bonus

Merit pay that is awarded in a single payment and not built into base pay.