ACCT Exam 3
capacity of a bottleneck can be effectively increased by:
1)focusing business process improvement efforts on the bottleneck 2)subcontracting some of the processing that would be done in that area
What is a company called when it is involved in more than one activity in the value chain?
Vertical integration
Horizontal integration
When a company sells one product in MULTIPLE MARKETS
How should a company decide how to fill demand for a product?
pick one with highest CM per unit of constrained resource
A business segment should only be dropped if a company can avoid more in fixed costs than it gives up in:
Contribution margin
What decision do you make for a split off or joint product decision?
sell or further process
When demand for products exceeds the production capacity, a _______________ decision must be made
volume trade off