ABC Project Organization Has One Workstation That Is Capable of Generating

question 103

Multiple Choice

ABC project organization has one workstation that is capable of generating the drawings that their clients study before accepting ABC's bid.ABC is currently in the midst of three proposal projects and knows which proposed project will be most profitable and which will be least profitable.The workstation is scheduled so that the most profitable project's work is done first and the least profitable project work is done last.This is an example of:

• A)Identifying a constraint.
• B)Exploiting a constraint.
• C)Elevating a constraint.
• D)Subordinating a system.

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Definitions:

Cash Commitments

Obligations to pay out cash in the future for contracts or other agreed upon transactions.

Compensating Balance

A minimum bank account balance that a borrower agrees to maintain as a condition for borrowing from a lender.

Minimum Cash Balance

The least amount of cash a company aims to hold in its accounts to meet immediate transaction demands.

Bank Requirement

Specific conditions imposed by a bank on a borrower or account holder, including minimum balances and fees.