13. Which of the following best describes a plant operating at capacity? Select one: a. Managers should produce those products with the highest contribution margin in order to deal with the constrained resource. b. Fixed costs will need to change to accommodate increased demand. c. Only some specific machines or processes are operating at the maximum rate possible. d. Every machine and person in the plant is working at the maximum possible rate.

13. Which of the following best describes a plant operating at capacity? Select one: a. Managers should produce those products with the highest contribution margin in order to deal with the constrained resource. b. Fixed costs will need to change to accommodate increased demand. c. Only some specific machines or processes are operating at the maximum rate possible. d. Every machine and person in the plant is working at the maximum possible rate.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 15MC: When operating in a constrained environment, which products should be produced? A. products with the...

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When operating in a constrained environment, which products should be produced? A. products with the highest contribution margin per unit B. products with the highest contribution margin per unit of the constrained process C. products with the highest selling price D. products with the lowest allocated joint cost
When faced with a limited availability of machine-hours,management should consider producing those products that:a. Have the highest contribution margin per unit.b. Have the highest contribution margin ratios.c. Require the fewest machine-hours to produce.d. Contribute the highest contribution margin permachine-hour.
14. What is the opportunity cost of making a component part in a factory with no excess capacity? Select one: a. Variable manufacturing cost of the component. b. Cost of the production given up in order to manufacture the component. c. Net benefit foregone from the alternative use of the capacity required. d. Fixed manufacturing cost of the component.
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vi.2
RelyaTech Corporation manufactures a number of products at its highly automated factory. The products are very popular, with demand far exceeding the factory's capacity. To maximize profit, management should rank products based on their selling price gross margin contribution margin per unit of the constrained resource contribution margin
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Which of these four options is the correct answer? Thank you.
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Management believes that electrical cost is a mixed cost that depends on machine-hours. Using the high-low method to estimate the variable and fixed components of this cost, these estimates would be closest to: