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