31. In using the product cost concept of applying the cost-plus approach to product pricing, selling expenses, administrative expenses, and profit are covered in the markup. 
 

32. In using the variable cost concept of applying the cost-plus approach to product pricing, fixed manufacturing costs and fixed selling and administrative expenses must be covered by the markup. 
 

33. In using the variable cost concept of applying the cost-plus approach to product pricing, fixed manufacturing costs and both fixed and variable selling and administrative expenses must be covered by the markup. 
 

34. When standard costs are used in applying the cost-plus approach to product pricing, the standards should be based upon normal levels of performance. 
 

35. When standard costs are used in applying the cost-plus approach to product pricing, the standards should be based upon ideal levels of performance. 
 

36. A bottleneck begins when demand for the company’s product exceeds the ability to produce the product. 
 

37. A bottleneck happens when an employee is too slow to keep with current production. 
 

38. When a bottleneck occurs between two products, the company must determine the contribution margin for each product and manufacture the product that has the highest contribution margin per bottleneck hour. 
 

39. The theory of constraints is a manufacturing strategy that focuses on reducing the influence of bottlenecks on a process. 
 

40. The lowest contribution margin per scarce resource is the most profitable.