Relative profitability measures should be used only when the company is not faced with a constraint.

Question

Quizplus · Accepted Answer

Relative profitability measures can still be useful even when a company is faced with a constraint, such as limited resources or capacity. These measures allow the company to identify which products or services provide the highest return on investment and prioritize them accordingly. However, it is important to consider the constraint when interpreting the results and making decisions.

Relative Profitability Measures Should Be Used Only When the Company