ACC 312 Study Guide - Midterm Guide: Marketing Mix, Demand Curve, Total Absorption Costing
Document Summary
Product mix decisions and limiting factors labour hours levels of labour skills. A limiting factor is the lack of any resource which limits the activity of the organisation. Product mix decisions are influenced by the scarcity of resources and the availability of limiting factors. An organisation may not have access to an unlimited supply of resources to allow it to exploit every opportunity to continue indefinitely to increase contribution. The organisation has to decide what mix of products or services to provide, given the restricted resources available to it, with its volume of output constrained by the limited resources rather than by sales demand. It can do this by seeking to maximise profit by optimising the benefit it obtains from the limiting factor. Sales pricing policy is just one of the four categories of decision included in the marketing mix of price, product, place, and promotion, and is based on cost and market factors that influence demand for the product.
