What Is the Correct Order of the Five Steps to Achieve

question 6

Multiple Choice

What is the correct order of the five steps to achieve the goal of improving organizational performance? 1. Exploit the binding constraints.
2. Elevate the organization's binding constraints.
3. Iclentify an organization's constraints.
4. Repeat the process as a new constraint emerges to limit output.
5. Subordinate everything else to the decisions made when exploiting the binding constraints

• A)1,3,5,2,4
• B)3,1,5,2,4
• C)3,1,5,4,2
• D)3,5,1,2,4

---

Definitions:

Sales Discounts

A reduction in the price of goods or services offered to customers, usually to prompt early payment or reward bulk purchases.

Gross Price Method

Gross Price Method involves recording inventory at its gross price, before deducting any trade discounts or rebates.

Allowance for Doubtful Accounts

An accounting concept referring to an estimate of the amount of receivables that may not be collected, which is used to reduce the total accounts receivable reported on the balance sheet.

Prior-Period Adjustments

Adjustments made to the financial statements to correct errors or omissions in previously issued financial statements from prior periods.