If an Organisation Cannot Deliver Goods or Services Quickly Because

question 134

Multiple Choice

If an organisation cannot deliver goods or services quickly because of a constraint, managers might relax that constraint to:

• A) Maximise customer satisfaction
• B) Ensure optimal profitability
• C) Increase the selling price of the product
• D) Find the next bottleneck

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Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding financial costs.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting the reduction in value over time.

Working Capital

The difference between a company's current assets and current liabilities, indicating the amount of liquid assets the company has available to build its business.

Net Investment

The total amount spent by a company on acquiring new assets, after subtracting disposals, intended to enhance the business’s earning capacity.