According to the Theory of Constraints, Which of the Following

question 64

Multiple Choice

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

• A) Inventory
• B) Sales
• C) Operating revenue
• D) Unit cost
• E) Overhead per unit

---

Definitions:

Principal's Obligation

A duty or responsibility that a principal must fulfill as part of an agreement, particularly in agency relationships.

Repayment Period

The time frame agreed upon within a loan agreement for the borrower to pay back the borrowed amount plus any applicable interest.

Promissory Note

Commercial paper or instrument in which the maker promises to pay a specific sum of money to another person, to his order, or to bearer.

Cosign

To sign jointly with another or others, especially in agreeing to be responsible for a loan if the primary borrower defaults.