Which of the following is not relevant to a decision involving the allocation of a single constrained resource among multiple products?
A)Unit variable cost of each product
B)Selling price of each product
C)Fixed manufacturing costs
D)Number of orders waiting to be filled

Question

Quizplus · Accepted Answer

Fixed manufacturing costs are not relevant to the decision involving the allocation of a single constrained resource among multiple products because these costs do not change with the level of production or the decision on how to allocate resources among products. The decision should be based on factors that will change with the allocation of the constrained resource, such as unit variable cost, selling price, and demand indicated by orders waiting to be filled.

Which of the Following Is Not Relevant to a Decision