When resources are constrained, managers should emphasise products and services that maximise the contribution margin per unit of constrained resource.

Question

Quizplus · Accepted Answer

This statement is true. When resources are constrained, managers should prioritize the production of products and services that generate the highest contribution margin per unit of the constrained resource. This can help maximize profits and ensure optimal use of limited resources.

When Resources Are Constrained, Managers Should Emphasise Products and Services