When Multiple Products Share a Constrained Resource, the Constrained Resource

question 148

Multiple Choice

When multiple products share a constrained resource, the constrained resource should be allocated first to the product with

• A)the lowest contribution margin.
• B)the lowest contribution margin per unit.
• C)the highest contribution margin per constrained resource.
• D)the highest contribution margin.

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Definitions:

Carbon Dioxide

A gas that is transparent and lacks smell, created during the burning of organic materials and the process of respiration.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, controlling the movement of substances in and out.

Lungs

Organs in the chest involved in the respiratory system where blood exchanges oxygen and carbon dioxide.

Hemoptysis

The coughing up of blood or blood-stained mucus from the lungs or airways, possibly indicating a serious underlying condition.