According to the Theory of Constraints, Which of the Following

question 113

Multiple Choice

According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production?

• A) Quality time
• B) Break time
• C) Research time
• D) Just-in-time
• E) Idle time

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Definitions:

Residual Income

Income that remains after all operating expenses, including cost of capital, are subtracted from revenue, often used in performance measurement.

Investment Center

A business segment whose manager has control over cost, revenue, and investments in operating assets.

Cost Center

A department or segment of a business to which costs can be allocated but does not directly generate revenue.

Profit Center

A segment or department within an organization that is directly responsible for generating profit, measured by its performance.