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Which of the Following Statements Is True

question 30

Multiple Choice

Which of the following statements is true?


Definitions:

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle, impairing the efficiency of the system.

Constrained Resource

A limited resource within a production process that restricts the company's ability to produce more goods or services.

Profitable Use

An application or deployment of resources in a manner that generates financial gain or returns above the initial cost.

Contribution Margin

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

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