When Resources Are Constrained, Managers Should Emphasise the Product with the

question 114

Multiple Choice

When resources are constrained, managers should emphasise the product with the

• A) Highest contribution margin per unit
• B) Highest contribution margin per unit of constrained resource
• C) Lowest average cost
• D) Largest market share

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Definitions:

Trial Balance

A summary listing of the titles and balances of accounts in the ledger.

Drawing Account

An account used to record amounts withdrawn by the owner of a business for personal use.

Closing Entry

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent ones, preparing for the next period.

Pre-closing Trial Balance

A financial report listing all the account balances in the general ledger before adjusting entries are made for the preparation of financial statements.