A Company That Is Operating at Full Capacity Should Emphasize

question 12

Multiple Choice

A company that is operating at full capacity should emphasize those products and services that have the:

• A) lowest total per-unit costs.
• B) highest contribution margin per unit.
• C) highest contribution margin per unit of scarce resource.
• D) highest operating income.
• E) highest sales volume.

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Definitions:

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary data source for the financial statements.

Accounts Receivable

Unpaid amounts by customers to a company for goods or services already rendered.

Cash Receipts Journal

A dedicated journal used to record all cash inflows or receipts of a business.

Sales of Merchandise

The total revenue generated from selling goods that are intended for resale as part of a company's normal business operations.