According to the Theory of Constraints, Which of the Following

question 24

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)Decide how to exploit the constraint.
• C)Subordinate and synchronize.
• D)Determine customer demand.

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Definitions:

Investing Section

A part of a company's cash flow statement that shows the cash spent on or generated from investment activities, such as purchasing physical assets or securities.

Capital Assets

Long-term assets acquired for operation and not for resale, typically including buildings, machinery, and equipment.

Direct Method

A method of allocating service department costs directly to producing departments without considering interactions among service departments.

Operating Activities

Activities that constitute the primary or main activities of an organization, including sales, supply, and production functions, often reflected in the cash flow statement.