Which of the Following Statements Is Incorrect

question 153

Multiple Choice

Which of the following statements is incorrect?

• A) When faced with multiple demands on constrained resources, managers should choose the product that provides the highest unit contribution margin.
• B) Constraints are limitations on a company's ability to satisfy demands for its products.
• C) Constraints are also referred to as bottlenecks.
• D) Managers seek to minimize the impact of bottlenecks on the operations of a business.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Unethical Business Practices

Behaviors or decisions by businesses that are morally wrong, illegal, or violate professional standards.

Insider Trading

Refers to the illegal practice of trading a public company's stock or other securities based on material, nonpublic information about the company.

High Executive Salaries

Compensation that is significantly above the average wage, typically awarded to top-level management and executives.