According to the Theory of Constraints, Which of the Following

question 122

Multiple Choice

According to the theory of constraints, which of the following is a financial measurement that can be used to measure the firm's ability to make money?

• A) Net profit
• B) Throughput
• C) Inventory
• D) Sales
• E) Retained earnings

---

Definitions:

Narrow Span of Control

Narrow span of control refers to a management structure where a manager oversees a small number of subordinates, allowing for closer supervision.

Interdependent Work

refers to tasks or projects that require collaboration and coordination among team members or departments for successful completion.

Work Activities

Tasks, duties, and responsibilities that are part of a job or occupation, contributing to the production of goods or services.

Extensive Training

Comprehensive and in-depth education or instruction provided to employees to enhance their skills, knowledge, and performance in their current or future job roles.