The Best Objective When Faced with Limited Resources Is to Maximize

question 95

Multiple Choice

The best objective when faced with limited resources is to maximize:

• A) the gross profit per unit of the constraining resource.
• B) the contribution margin per unit of the constraining resource.
• C) production of the product with the highest selling price.
• D) production of the product with the highest customer demand.

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Definitions:

Matching Principle

An accounting principle that recognizes expenses in the same period as the revenues they are related to are earned.