Which of the Following Is a Theory of Constraints (TOC)

question 40

Multiple Choice

Which of the following is a theory of constraints (TOC) measure of product profitability that equals price less materials cost, including all purchased components and materials handling costs?

• A) Takt time.
• B) Throughput margin.
• C) Profitability margin.
• D) Price analysis.

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Definitions:

Automatic Stabilizer

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional government action, such as progressive tax rates and unemployment benefits.

Government Purchases

Expenditures by government bodies on goods and services that directly absorb resources or services and are part of government consumption expenditure and gross investment.

Net Taxes

The difference between the total amount of taxes collected by the government and any transfers or subsidies it pays out.

Spending Multiplier

A concept in economics that quantifies the impact of a change in fiscal policy on the overall economy, indicating how an initial change in spending leads to a larger change in income and output.