Data for a Factory -
the Theory of Constraints Has Its Own Special Definitions

question 8

Multiple Choice

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$

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The theory of constraints has its own special definitions

• A)Operating expense = non-material conversion costs excluding labour costs
• B)Operating expense = labour costs
• C)Operating expense = material conversion costs and labour costs
• D)Operating expense = non-material conversion costs especially labour costs

Calculate net new borrowing and understand its implications on financial statements.

Understand and calculate net working capital from the statement of financial position.

Analyze the change in net working capital and its impact on a firm's financial health.

Determine operating cash flow using income and expense data.

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Definitions:

Immediate Feedback

Prompt response or input given to an individual or group shortly after performing a task, aimed at improving future performances.

Douglas McGregor

Douglas McGregor was a social psychologist whose work in the field of management and motivation theory led to the development of the X and Y theory, contrasting two different views of workforce motivation.

Human Side

The aspects of work or situations that pertain to the emotional, psychological, and social needs of individuals.

Cyber Loafing

The act of using the internet for non-work related activities during work hours, which can decrease productivity.