Which of the Following Is the Key to Choose the Product

question 64

Multiple Choice

Which of the following is the key to choose the product type to be maximized, in making product mix decisions under constraining factors?

• A)revenue per unit
• B)contribution margin per unit of product
• C)contribution margin per unit of the constraining factor
• D)gross profit per unit using traditional costing

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Definitions:

Aging the Accounts

The process of categorizing and reviewing accounts receivable based on the length of time an invoice has been outstanding.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.

Bad Debt Expense

An estimate of receivables that a company does not expect to collect, recognized as an expense in the income statement.

Open Account

A type of credit arrangement where goods and services are delivered with the understanding that payment will be made at a later date.