The Same Constrained Resource Is Used by Four Different Products

question 68

Multiple Choice

The same constrained resource is used by four different products at Kurdyla Corporation. Data concerning those products appear below: The company does not have enough of the constrained resource to satisfy for demand of all four products.
-If salespersons are paid commissions that are a set percentage of sales,which product would they prefer to sell? In other words,if it is a choice between selling one unit of one product and one unit of another,which product would they prefer to sell?

• A)P300
• B)P200
• C)P100
• D)P400

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Definitions:

Beginning Work

Refers to the value of the work-in-progress at the start of an accounting period.

Assembly Department

A section within a manufacturing facility where components are assembled into final products.

Process Cost System

An accounting system used to track and allocate costs of production by processes or departments, commonly used in industries where goods are produced in a continuous process.

Advertising Company

A business specializing in creating, planning, and handling advertising and sometimes other forms of promotion for its clients.