According to the Theory of Constraints, Which of the Following

question 61

Multiple Choice

According to the theory of constraints, which of the following is not a step required to maximize and improve the performance of a value chain?

• A)Identify the constraint.
• B)Compare the constraints with industry averages.
• C)Decide how to exploit the constraint.
• D)Elevate the performance of the constraint.

---

Definitions:

Surplus

An excess of income or assets over expenditure or liabilities in a given period, typically a financial year.

Supervisory Cost

Supervisory cost involves expenses related to overseeing and directing operations or employees within a company, often including salaries of supervisors and related overhead.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services and are a significant component of manufacturing costs.

Factory Machines

Durable, industrial equipment used in the manufacturing process, critical to producing goods and services.