Which of the Following Is NOT a Performance Measure Used

question 8

Multiple Choice

Which of the following is NOT a performance measure used by theory of constraints to evaluate the effectiveness of improvements?

• A)increased throughput
• B)reduction in inventory
• C)reduction in throughput
• D)reduction in operating expense

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Definitions:

Output Level

is the quantity of goods or services produced within a given period by a firm or economy.

Plant Size

Refers to the scale or capacity of a manufacturing facility or industrial plant, affecting its potential output levels and efficiency.

Output Units

The measured quantity of goods or services produced by a firm or industry.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment to changes.