A company uses limiting factor analysis to identify its optimal production plan.

CIMA P1 Question Answer

A company uses limiting factor analysis to identify its optimal production plan. All of the company's products are manufactured in house and cannot be bought in.

What objective is assumed with limited factor analysis?

Cost minimisation

Ensuring customer demand is met

Profit maximisation

Revenue maximisation

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A company uses limiting factor analysis to identify its optimal production plan.

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