The item that restricts or constrains the production or sale of a product or service is the
A) limiting factor.
B) selling price.
C) unlimited resource.
D) contribution approach.

Question

Quizplus · Accepted Answer

The limiting factor is the item that restricts or constrains the production or sale of a product or service. This could be a limited resource such as raw materials, a lack of skilled labor, or production capacity limitations. Understanding the limiting factor is important for businesses to make informed decisions about how to allocate resources and maximize profits. The selling price and contribution approach are important factors too, but they do not directly restrict or constrain production or sale. Unlimited resources are not a realistic business concern.

The Item That Restricts or Constrains the Production or Sale