Determination of the optimum short-term product mix should focus on:
A) Fully absorbed costs.
B) Production (that is, resource) and demand constraints.
C) Sales-mix costs.
D) Revenue forecasts for each of the firm's products or services.
E) The relative sales values of the firm's outputs (goods or services).

Question

Quizplus · Accepted Answer

The optimum short-term product mix should be determined based on the available resources and demand for each product. Production and demand constraints are crucial factors in deciding the product mix to ensure efficient utilization of resources and to meet customer needs. A and C are not relevant as fully absorbed costs and sales-mix costs may not provide a complete picture of profitability. D and E are also important but are only part of the overall consideration in determining the product mix.

Determination of the Optimum Short-Term Product Mix Should Focus On