Which One of the Following Is Not One of the Five

question 87

Multiple Choice

Which one of the following is not one of the five steps in theory of constraints (TOC) analysis?

• A) Identify the binding constraint(s).
• B) Determine the most efficient utilization for each binding constraint.
• C) Manage the flow through the binding constraint.
• D) Identify those responsible for bottlenecks and make adjustments as needed.
• E) Redesign the manufacturing process for flexibility and fast throughput.

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Definitions:

Reportable

Pertains to events, transactions, or details that must be disclosed in official documents or reports according to regulations or standards.

Minimum Revenue

The lowest amount of revenue that a business must generate to cover its operating expenses and avoid losses.

Operating Segment

A distinct component of a business engaged in activities generating revenues and incurring expenses, whose results are regularly reviewed by the entity's chief operating decision maker.

Revenue Test

A criterion used to evaluate whether an entity's revenue level meets specific thresholds for financial reporting or regulatory compliance purposes.