If a company has limited resources, the key factor in performing incremental analysis is
A) contribution margin.
B) limited resources required.
C) contribution margin per unit of limited resource.
D) none of these.

Question

Quizplus · Accepted Answer

When a company has limited resources, it's important to prioritize the use of those resources by identifying which products or services generate the highest contribution margin per unit of limited resource. This approach allows the company to maximize profitability within the constraints of its resources. Therefore, contribution margin per unit of limited resource is the key factor in performing incremental analysis when resources are limited.

If a Company Has Limited Resources, the Key Factor in Performing