A Drummer Is(are)

question 55

Multiple Choice

A drummer is(are)

• A) the inventory needed to keep the constrained resource busy for a specified time interval.
• B) the major binding constraint.
• C) the minor binding constraint.
• D) the actions taken to tie the rate at which materials are released into the plant (at the first operation) to the production rate of the constrained resource.

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Definitions:

Initial Direct Costs

Initial Direct Costs are expenses directly associated with negotiating and arranging a lease that are not included in the net investment in the lease.

Sale-leaseback

A transaction where an asset is sold and immediately leased back from the new owner, allowing the seller to continue using the asset while freeing up capital.

Depreciation Expense

The systematic allocation of the depreciable amount of an asset over its useful life, representing wear and tear or obsolescence.