The Opportunity Cost of Using One Unit of the Constrained

question 9

Multiple Choice

The opportunity cost of using one unit of the constrained resource in a volume trade-off decision is equal to:

• A)the profitability index for the company's most profitable existing product.
• B)the profitability index for the company's least profitable product-even if none of the product is currently being made.
• C)the profitability index for the product whose production would be cut back if necessary.
• D)the profitability index of the product with the greatest sales.

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Definitions:

Rater

An individual who evaluates and provides feedback on the performance of others, commonly used in contexts of employee performance reviews, assessments, and surveys.

Management-by-objectives

A performance management approach where managers and employees work together to set, record, and monitor goals for a specific period, aiming to improve organizational performance.

Performance Appraisals

An evaluative process in which the performance of an employee is periodically reviewed and discussed, aiming to identify strengths, areas for improvement, and the alignment with overall organizational goals.

Regional Manager

An individual responsible for overseeing the operations, management, and profit of multiple locations or branches within a specified geographical area.