The Theory of Constraints (TOC) Defines Throughput Margin as ________

question 71

Multiple Choice

The theory of constraints (TOC) defines throughput margin as ________.

• A) operating income minus the direct material costs of the goods sold
• B) operating income minus the direct labor costs of the goods sold
• C) revenues minus the direct material costs of the goods sold
• D) revenues minus the full costs of the goods sold

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Definitions:

Economic Relationships

Connections between entities (such as individuals, companies, or countries) that are based on financial transactions and the exchange of goods and services.

Trans-Tasman Trade

Describes the trade relationship and economic exchanges between Australia and New Zealand, named after the Tasman Sea that separates the two countries.

Economic Agenda

A set of priorities and plans designed by a government or organization to guide economic policies and actions.

Bilateral Relationship

A relationship between two countries or entities characterized by mutual agreements, cooperation, or exchange of goods/services.