Sometimes constraints are in operation that restrict the amount of productive capacity available to a business, or the potential market for a product, or the availability of particular types of material or labour. In management accounting, such constraints are commonly referred to as:

Question

Quizplus · Accepted Answer

The term commonly used in management accounting to describe constraints that limit productive capacity, market potential or availability of resources is "limiting factors". While the other choices may also describe constraints, "limiting factors" is the technical term used in this context.

Sometimes Constraints Are in Operation That Restrict the Amount of Productive