The Theory of Constraints Focuses on Maximizing Throughput Contribution Margin

question 91

Multiple Choice

The theory of constraints focuses on maximizing throughput contribution margin while minimizing all of the following except:

• A) selling expenses per unit sold.
• B) production bottlenecks.
• C) investment in buildings.
• D) investment in inventories.

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Definitions:

Managed Portfolio

An investment portfolio that's actively managed by a professional, aiming to achieve specified investment goals.

Alpha

A metric used to measure the performance of an investment relative to a benchmark, reflecting the excess return of the investment compared to the overall market performance.

Time-Weighted Return

A method of calculating investment returns that eliminates the effects of cash flows into and out of the portfolio, focusing solely on the investment's performance.