Which of the Following Statements Related to the Theory of Constraints

question 88

Multiple Choice

Which of the following statements related to the theory of constraints is/are TRUE?

• A)Sales less direct materials costs equals throughput contribution.
• B)Throughput contribution equals sales plus direct materials, and the theory of constraints focuses on revenue and cost management when an organization is faced with bottlenecks.
• C)Throughput contribution equals sales plus direct materials.
• D)The theory of constraints focuses on process-costing when an organization is faced with bottlenecks.
• E)Throughput contribution equals sales plus direct manufacturing costs.

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Definitions:

Cognitions

Mental processes involved in acquiring knowledge and understanding through thought, experience, and the senses, including perception, thinking, and memory.

Role Playing

Role playing involves adopting and acting out the role of a character or persona, often in a therapeutic, educational, or training context, to explore different perspectives or behaviors.

Attitude Change

The process by which an individual's viewpoint or feelings towards a subject are altered.

Effort Justification

A special case of cognitive dissonance: inconsistency is experienced when a person makes a considerable effort to achieve a modest goal.