Multiple choice

Directions: Choose the correct option for the given question.

Key factor is taken into consideration to judge the _____ of different products, whenever there is any shortage.

  1. liquidity

  2. profitability

  3. stability

  4. consistency

  5. financial position
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A key factor (or limiting factor) is a constraint that limits the volume of production or sales. Identifying this factor helps management prioritize products that offer the highest contribution per unit of that limiting factor, thus maximizing profitability.

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