The Theory of Constraints Is Used for Cost Analysis When

question 77

Multiple Choice

The theory of constraints is used for cost analysis when:

• A)a manufacturing company produces multiple products and uses multiple manufacturing facilities and /or machines
• B)using a long-term time horizon
• C)operating costs are assumed fixed
• D)All of these answers are correct.

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Definitions:

Unpredictable

not able to be predicted or foreseen, often because of constant changes or lacking a pattern.

Variable-Interval

A timetable for reinforcement where the time intervals between receiving reinforcement vary around a certain average but are unpredictable.

Reinforcement

A principle in behavioral psychology where an outcome or consequence of a behavior increases the likelihood of that behavior occurring again in the future.

Decreases

A reduction in size, quantity, or degree.