Which of the Following Statements Related to the Theory of Constraints

question 82

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:

Years

A measurement of time that typically consists of 365 days, or 366 in a leap year, used as a basic unit for gauging durations and intervals.

Total Percentage Return

A measure of the overall return on an investment, including both capital gains and dividends or interest, expressed as a percentage of the initial investment value.

Interest Payment

The payment made by a borrower to a lender as a form of compensation for the use of borrowed money.

Investment

The allocation of resources, such as capital, with the expectation of generating an income or profit.