Cranston Corporation Makes Four Products in a Single Facility

question 105

Multiple Choice

Cranston Corporation makes four products in a single facility. Data concerning these products appear below:
The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines.
-Which product makes the LEAST profitable use of the milling machines?

• A) Product A
• B) Product B
• C) Product C
• D) Product D

---

Definitions:

Liabilities

Obligations or debts that a company owes to others, typically the sums of money due to creditors, suppliers, or tax departments.

Acquisition Value

The total cost incurred to acquire an asset, including the purchase price and all other expenses directly tied to the acquisition process.

Certified Public Accountant

A designation given to accounting professionals in numerous countries around the globe, indicating they have passed a licensure examination and met statutory and licensing requirements.

Management

The process of directing and controlling a group of individuals or an organization to reach a goal.