Which of the Following Statements Is Incorrect

question 116

Multiple Choice

Which of the following statements is incorrect?

• A) When faced with multiple demands on a 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:

Opportunity Cost

The expense incurred from overlooking the next most favorable choice during a decision-making process.

Microchip(s)

Small semiconductor devices that contain integrated circuits used for various technological applications.

Tire

A rubber covering, typically inflated or surrounding an air-filled tube, placed around a wheel to form a cushioned contact with the road.

Opportunity Cost

The dismissal of prospective benefits from other opportunities by settling on one choice.