Assuming All Units That Are Produced Can Be Sold, in Deciding

question 47

True/False

Assuming all units that are produced can be sold, in deciding which of alternative
products to produce in circumstances of constrained resources, managers will always seek to maximize the production of the product with the highest per-unit contribution margin.

---

Definitions:

Equivalent Unit

A measure used in cost accounting to express the amount of work done on units of production during a period, considering partially completed units.

Conversion Costs

The cost required to convert raw materials into finished products, typically including labor and overhead expenses.

Equivalent Units Of Production

A method used in process costing to convert partially completed units into a number of equivalent full units.

Percentage Of Completion

An accounting method used to recognize revenue and expenses of long-term contracts as a function of the estimated completion percentage of the project.