Which of the Following Statements Is Correct

question 158

Multiple Choice

Which of the following statements is correct?

• A)The theory of constraints focuses on revenue and cost management when dealing with bottlenecks.
• B)The theory of constraints decreases throughput contribution (sales dollars minus direct material costs).
• C)The theory of constraints maximizes investments.
• D)The theory of constraints manages production by letting non-constrained activities set the pace for the rest of operations.

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Definitions:

Mental Ability

The capacity to learn, reason, understand, and similar forms of mental activity; aptitude in grasping truths, relationships, facts, meanings, etc.

Cognitive Ability

The capacity of an individual to perform mental processes related to learning and problem solving, including memory, reasoning, understanding, and decision making.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Intellectual Capital

The collective knowledge, information, intellectual property, and experience that an organization possesses.