Which of the Following Statements About Bottlenecks Is Best

question 50

Multiple Choice

Which of the following statements about bottlenecks is best?

• A) Increasing bottleneck capacity does not increase plant capacity.
• B) When capacities are perfectly balanced, it can be said that every operation is a bottleneck.
• C) Floating bottlenecks are most likely to occur with line flow processes.
• D) Floating bottlenecks are created by stability in the workload.

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Definitions:

Capital Budgeting Decisions

The process of evaluating and selecting long-term investments that are in line with the firm's goal of maximizing shareholder value.

Future Outcomes

Possible events or results that have not yet occurred and may be influenced by current actions or decisions.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess profitability of investments.