A couple of questions

1. The best objective, when faced with limited resources, is to maximize

A. the gross profit per unit of the constraining resource

B. the contribution margin per unit of the constraining resource

C. production of the product with the highest selling price

D. production of the product with the highest customer demand

2.Ethan Paid $3 for a bottle of thirstaid. later while on a hiking trip, she was offered $8 for the thirstaid. Which of the followingstatementss is correct?

A. The $8 offer is not relevant if Ethan refuses to sell the thirstaid

B. If Ethan drinks the thirstaid, no opportunity cost is associated with his decision

C. The $3 original price is irrelevant to his decision to sell the thirstaid

D. all of the above

3. Which of the following regarding direct costs is a correct statement?

A. direct costs are always fixed costs

B. direct costs are always variable costs

C. direct costs are never selling and administrative expenses

D. direct costs are easily traced to costs objects

4. Whcih of the follwoing stataemsenys is incorrect?

A. Managers seek to minimize the impact of bottlenecks on the operations of a business

B. Constraints are also referred to as bottlenecks

C. When faced with multiple demands on a constrained resources, managers should choose the product that provides the highest unit contribution margin.

D. Constraints are limitations on a company's ability to satisfy demands for its products