The Theory of Constraints Focuses on Shortrun Maximization of Throughput

question 69

True/False

The theory of constraints focuses on shortrun maximization of throughput margin, revenues minus the cost of goods manufactured.

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Option Vega

A measure of an option's sensitivity to changes in the volatility of the underlying asset, indicating how much the option's price is expected to move per 1% change in volatility.

Standard Deviation

The measure indicating the amount of variation or spread in a set of data points relative to its mean.

Underlying Asset

The financial instrument (such as a stock, bond, commodity, or currency) upon which a derivative's value is based.