Which of the Following Is TRUE About the Theory of Constraints

question 95

Multiple Choice

Which of the following is TRUE about the theory of constraints?

• A)TOC recognizes that EOQ is important.
• B)TOC recognizes that lowering inventory decreases carrying costs and thus decreases operating expenses and improves net income.
• C)TOC recognizes that lower inventories mean more defects.
• D)TOC recognizes that lower inventories mean slower response to customers.

Understand the accounting treatments and disclosures required for investments in associates including the discontinuation of equity method due to incurred losses.

Understand the concept and calculation of direct and indirect non-controlling interests (NCI) in a multi-level subsidiary structure.

Grasp the principles and steps involved in the preparation of consolidated financial statements for a group with multiple subsidiaries.

Recognize the impact of inter-entity transactions on consolidated financial statements, including profits, dividends, and loan interests.

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Definitions:

Extinction Effect

The gradual weakening and eventual disappearance of a conditioned response over time when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Effective Punishment

A consequence that successfully reduces the likelihood of a behavior being repeated, contingent on the behavior and appropriately administered.

Punishment

A consequence that diminishes the frequency of the behavior it follows, often used in the context of behavior modification.

Aggression

Behavior intended to harm or intimidate others, which can be physical, verbal, or non-verbal.