Which of the Following Statements Is Incorrect

question 116

Multiple Choice

Which of the following statements is incorrect?

• A) When faced with multiple demands on a constrained resources,managers should choose the product that provides the highest unit contribution margin.
• B) Constraints are limitations on a company's ability to satisfy demands for its products.
• C) Constraints are also referred to as bottlenecks.
• D) Managers seek to minimize the impact of bottlenecks on the operations of a business.

Understand the impact of daily operations on financial statement calculations and forecasts.

Compute net income by contrasting total credits and debits from the income statement columns.

Distinguish between the implications of balance sheet credits exceeding debits and vice versa.

Relate the capital balance adjustments to its components including net income, withdrawals, and investments.

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Definitions:

Yerkes-Dodson Law

A theory suggesting that there is an optimal level of arousal for the best performance on a task: too little or too much arousal can decrease performance.

Drive-Reduction Theory

A theory of motivation suggesting that biological needs create internal states of tension or drives, which organisms are motivated to reduce.

Primary Drives

Basic biological needs or desires, such as hunger and thirst, that motivate behavior.

Homeostasis

The tendency of a biological system to maintain stability while adjusting to conditions that are optimal for survival.