Which of the Following Is One of the Four Principles

question 20

Multiple Choice

Which of the following is one of the four principles of bottleneck management?

• A) Release work orders to the system at the bottleneck's capacity pace.
• B) Lost time at a non-bottleneck is lost system capacity.
• C) Increasing capacity at bottleneck stations is a mirage.
• D) Increased non-bottleneck capacity is increased system capacity.
• E) Bottlenecks should be moved to the end of the system process.

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Definitions:

Depreciation

The allocation of the cost of an asset over its useful life.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses.

Degree of Financial Leverage

A measure of a company's use of borrowed funds to finance its operations, indicating the sensitivity of its earnings to fluctuations in operational income.

EPS

Earnings Per Share (EPS) is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.