The Formula for Computing the Contribution Per Constrained Resource Is

question 80

Multiple Choice

The formula for computing the contribution per constrained resource is

• A)contribution margin per unit multiplied by the constrained resource per unit.
• B)contribution margin per unit divided by the constrained resource per unit.
• C)total contribution margin multiplied by the constrained resource per unit.
• D)total contribution margin divided by the constrained resource per unit.

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Definitions:

Zero Balance Accounts

Bank accounts that are maintained at a zero balance by automatically transferring funds from a master account in an exact amount only when checks are presented.

Payroll Account

A bank account specifically used by businesses to process salary payments to their employees.

Safety Stock

Additional inventory kept to prevent stockouts due to variability in demand or supply lead time.

Banking Relationship

Refers to the business interactions and communications between a bank and its customers, including the services and products offered.