Application of the Theory of Constraints Will Improve All of the Following

question 59

Multiple Choice

Application of the theory of constraints will improve all of the following EXCEPT

• A)net income.
• B)debt-to-equity ratio.
• C)cash flow.
• D)return on investment.

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Definitions:

Average Cost

The total cost of production divided by the total quantity produced, indicating the cost per unit of output.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Declining

A term indicating a decrease or reduction in quantity, quality, or importance over time.

Cost Function

A mathematical relationship describing how the cost of production changes with changes in the quantity of output produced.