In Making Product Mix Decisions Under Constraining Factors,which of the Following

question 7

Multiple Choice

In making product mix decisions under constraining factors,which of the following is the key to choosing the product type to be maximized?

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

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Definitions:

Authority

A way of knowing based on knowledge from a credible or respected source of information.

Intuition

Refers to arriving at an answer without quite knowing how one arrived there; a hunch or “gut instinct.”

Nomothetic

A research approach with an emphasis on measurement with a view to making generalizations about human behavior.

Idiographic

A research approach with an emphasis on understanding the subjectivity and individuality of human communication, rather than universal laws of human behavior.