Increasing the Capacity of the Operation Just Before a Bottleneck

question 101

True/False

Increasing the capacity of the operation just before a bottleneck operation will increase the output of the process.

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Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as its original cost minus any depreciation, amortization, or impairment costs.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash.

Par Value

The face value of a bond or the stated value of a stock; does not necessarily reflect market value.

Capital Lease

A lease agreement that is recorded as an asset on the lessee's balance sheet because it effectively transfers the risks and benefits of ownership from the lessor to the lessee.