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:

Expected Revenue

Expected revenue is the amount of money a business anticipates earning over a specified period, often based on historical data and future projections.

Probability Distribution

A mathematical function that gives the probabilities of occurrence of different possible outcomes for an experiment.

English Auction

A type of auction where bidders publicly submit higher and higher bids, with the highest bidder winning the item.

Rational Self-Interest

The principle that individuals will make decisions that benefit themselves, assuming they have all necessary information and make rational choices.