The Theory of Constraints (TOC)is

question 10

Multiple Choice

The theory of constraints (TOC) is:

• A)A strategic technique primarily used to reduce waste
• B)A strategic technique used to help firms effectively improve the rate at which raw materials are converted to finished goods and then money through sales
• C)A strategic technique used to balance capacity across all resources
• D)All of the above

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Definitions:

Operating Cash Flow

Operating cash flow is the money generated from a company's regular business operations, highlighting its capacity to sustain and grow operations.

Fixed Cost

Overhead expenses that remain constant regardless of the volume of goods or services produced by a business.

Sales Commissions

A form of payment to a salesperson for services rendered, which is often calculated as a percentage of the sales they have generated.

Chief Financial Officer

The senior executive responsible for managing the financial actions of a company, including financial planning, management of financial risks, and financial reporting.