When Resources Are Constrained, Managers Should Emphasize the Product with The

question 39

Multiple Choice

When resources are constrained, managers should emphasize 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

Recognize the role of automation and technology in enhancing the competitiveness of small businesses.

Identify the basic elements of the operations management system (inputs, transformation processes, outputs, control systems, and feedback).

Distinguish between different types of production systems (analytic, synthetic, continuous, and intermittent).

Understand the concept of social responsibility for a business and its implications.

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Definitions:

Production Level

The quantity of goods or services produced within a specified period by a company, factory, or manufacturing plant.

Direct Labor

The cost associated with workers who are directly involved in the production of goods or services.

GAAP

Generally Accepted Accounting Principles; a set of rules and standards used for financial reporting and accounting.

Cost Flow Assumption

An assumption about how costs are removed from inventory and reported as cost of goods sold, influencing how inventory and profits are accounted for.