Question

A useful device or concept for solving production problems involving multiple products and limited resources is:

A. Gross profit per unit of product.
B. Contribution per unit of scarce resource.
C. Value-stream costing.
D. Relevant cost pricing.
E. The contribution income statement.

Answer 1

Contribution per unit of scarce resource is a useful device or concept for solving production problems involving multiple products and limited resources.

Step-by-step explanation:

The useful device or concept for solving production problems involving multiple products and limited resources is Contribution per unit of scarce resource. This concept helps to determine which product should be produced to maximize the contribution towards the scarce resource. By calculating the contribution per unit of the scarce resource, a firm can identify the most profitable product to focus on and allocate resources accordingly.