The Use of Theory of Constraints (TOC) Differs from Traditional

question 94

Multiple Choice

The use of theory of constraints (TOC) differs from traditional decision making because it:

• A) examines the resource's utilization rather than the cost of a product
• B) recognizes that the individual resources that limit business performance are difficult to find and manage
• C) places greater emphasis on timing than cost in adjusting resources that are limiting business performance
• D) provides a way to analyze the operating cost of a resource that is easier to use than traditional accounting methods

---

Definitions:

Voucher Journal

A record that details every financial transaction of a business, paired with the documentation that supports the transaction as a part of the accounting system.

Voucher System

A control mechanism in accounting that ensures all purchases and expenditures are properly authorized before payment is made.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses.

Voucher System

A control mechanism in accounting that involves authorization and documentation before a financial transaction is made.