Which of the Following Is NOT an Effective Way of Dealing

question 25

Multiple Choice

Which of the following is NOT an effective way of dealing with a production constraint (i.e.,bottleneck) ?

• A) Reduce the number of defective units produced at the bottleneck.
• B) Pay overtime to workers assigned to the bottleneck.
• C) Pay overtime to workers assigned to workstations located after the bottleneck in the production process.
• D) Subcontract work that would otherwise require use of the bottleneck.

---

Definitions:

Asset Write-downs

Reductions in the book value of assets when their fair market value falls below the carrying value on the balance sheet.

Revenues and Gains

Measures of income for a business, where revenues come from primary operations and gains from secondary activities or the sale of assets.

Peripheral Activities

Secondary or non-core operations of a company that are not essential to its primary business functions.

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to ensure financial statements are consistent and comparable.