With a Constraining Resource,which Product Should a Manager Select to Emphasise

question 172

Multiple Choice

With a constraining resource,which product should a manager select to emphasise?

• A)Highest gross profit
• B)Highest contribution margin per unit of the constraining resource
• C)Lowest contribution margin per unit of the constraining resource
• D)Highest sales price

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Definitions:

Tax Collection

The process performed by governments or authorized agencies to collect taxes from individuals, corporations, and other entities to fund public expenditures.

Administrative Costs

The resources used (which is a cost) by government to collect the tax, and by taxpayers to pay it as well as to evade it, over and above the amount of the tax.

Inefficiency

A scenario where resources are not used optimally, leading to wasted potential output or outcomes that do not maximize societal welfare.

Progressive

Refers to a tax system where the tax rates increase as the taxable amount increases, often aimed at reducing inequality.