Specialization of Labor and Management Typically Supports

question 207

Multiple Choice

Specialization of labor and management typically supports

• A) overproduction.
• B) economies of scale.
• C) diseconomies of scale.
• D) diminishing returns.

---

Definitions:

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, contributing to covering fixed costs and generating profit.

Production Constraint

A limitation or bottleneck in a manufacturing process that affects the overall output.

Contribution Margin Ratios

The proportion of sales revenue that remains after variable costs are subtracted, indicating how well a company can cover fixed costs and generate profits.

Constrained Resource

A factor within a production or operation process that limits the overall output, such as limited machinery, labor, or materials.