Macha Corporation Has Four Different Products That Use the Same

question 2

Multiple Choice

Macha Corporation has four different products that use the same constrained resource.Data concerning those products appear below: The company does not have enough of the constrained resource to satisfy for demand of all four products.From the standpoint of the entire company,if it is a choice between sales of one unit of one product versus another,which product should the salespersons emphasize?

• A)N400
• B)N300
• C)N200
• D)N100

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Definitions:

GAAP

Stands for Generally Accepted Accounting Principles, which are the standard framework of guidelines for financial accounting in a particular jurisdiction.

Straight-Line Method

A method of depreciation where an asset's cost is evenly reduced over its useful life.

Market Interest Rate

Market Interest Rate refers to the prevailing rate at which interest is paid by borrowers for loans or earned by investors in the market.

Stated Interest Rate

The annual interest rate declared on a financial instrument, such as a loan or bond, not adjusting for compounding or market conditions.