According to the Theory of Constraints, Which of the Following

question 122

Multiple Choice

According to the theory of constraints, which of the following is a financial measurement that can be used to measure the firm's ability to make money?

• A) Net profit
• B) Throughput
• C) Inventory
• D) Sales
• E) Retained earnings

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Definitions:

Ending Inventory

The aggregate worth of a corporation's goods, raw materials, and both completed and in-progress items that remain unsold at the conclusion of a financial period.

Brown Bears

A species of bear noted for its varying sizes and colors, found in parts of North America, Europe, and Asia.

LIFO Method

An inventory valuation method that assumes the most recently produced items are sold first, with 'LIFO' standing for "last in, first out."

Ending Inventory

The total value of all unsold goods that a company has in its possession at the end of an accounting period.