According to Goldratt

question 24

Multiple Choice

According to Goldratt:

• A)An hour lost at the bottleneck is an hour lost for the entire system.
• B)A product coming out of a non-bottleneck is precious and should not be wasted.
• C)Maximizing the efficiency of all resources would generate money for the company.
• D)Utilization,Productivity,and Operating Expenses are the three vital metrics of a process.

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Definitions:

Total Assets

The sum of all assets owned by a company, including cash, investments, equipment, and real estate.

Profitability

A measure of how efficiently a company or project generates profit in relation to its revenue or investments.

Times Interest Earned

A financial ratio that measures a company’s ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Interest Payments

The amount paid by a borrower to a lender over a period of time for the use of borrowed money, typically expressed as an annual percentage rate.