In resource utilisation decisions,managers should:

Question

Quizplus · Accepted Answer

Managers should aim to maximise the contribution margin per unit of the scarce resource in order to make the best use of their resources and maximize profitability. Option A is incorrect as minimizing the contribution margin per unit would reduce profitability. Option B is also incorrect as it does not take into consideration the contribution of each unit to profitability. Option D is partially true as maximizing the contribution margin per unit is important, but not sufficient on its own without considering the scarcity of resources.

In Resource Utilisation Decisions,managers Should