In case of restrictions due to limiting factors, to maximize profit, the management should decide based on:

CS Executive · Corporate and Management Accounting · PYQS · December 2023
In case of restrictions due to limiting factors, to maximize profit, the management should decide based on:
(A) Highest P/V ratio
(B) Least Break-Even Point
(C) Highest Margin of Safety
(D) Highest Contribution per unit

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Management Accounting

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