When a manager increases the capacity of the bottleneck, it is called Two or more products that are produced from a common input are known as The _______________ is the point in the manufacturing process at which the joint products can be recognized as separate products The term___________ is used to describe the costs incurred up to the split-off point

1. When a manager increases the capacity of the bottleneck, it is called

relaxing (or elevating) the constraint

2. Two or more products that are produced from a common input are known as

joint products

3. The _______________ is the point in the manufacturing process at which the joint products can be recognized as separate products

split-off point

4. The term___________ is used to describe the costs incurred up to the split-off point.

joint cost

5. Decisions of this type are known as

sell or process further decisions

6. The term _____________ is used to describe how managers plan significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of new products.

capital budgeting

7. relate to whether a proposed project is accept-able—whether it passes a preset hurdle. For example, a company may have a policy of accepting projects only if they provide a return of at least 20% on the investment.

Screening decisions

8. , by contrast, relate to selecting from among several acceptable alternatives

Preference decisions

9. is current assets (e.g., cash, accounts receivable, and inventory) less current liabilities. When a company takes on a new project, the balances in the current asset accounts often increase

Working capital

10. The ________________ recognizes that a dollar today is worth more than a dollar a year from now if for no other reason than you could put the dollar in a bank today and have more than a dollar a year from now.

time value of money