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:

Development

The process of change and growth through which an individual or entity progresses by gaining physical, mental, or societal qualities over time.

Egocentrism

A cognitive bias where an individual is unable to see a situation from another person’s point of view, common in early childhood development.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).

Conservation

Conservation in cognitive psychology relates to the understanding that certain properties of objects, like volume or number, remain the same despite changes in their form or appearance.