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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