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10. A bottleneck happens when a key piece of manufacturing machinery can produce 1,000 units per hour and demand for the product supports a production

10. A bottleneck happens when a key piece of manufacturing machinery can produce 1,000 units per hour and demand for the product supports a production rate of 1,200 units per hour.

True

False

11.

When a bottleneck occurs in a process used in the production of multiple products, the company must determine the contribution margin for each product and give priority to the product that has the lowest contribution margin per bottleneck hour.

True

False

12.

Yield pricing is a type of "accepting business at a special price" differential analysis.

True

False

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