List and describe the three measures defined by the theory of constraint
What will be an ideal response?
(a) Throughput margin equals revenues minus the direct material costs of the goods sold, (b) Investments equal the sum of material costs indirect materials, work-in-progress and finished goods inventories, and (c) Operating costs equal all costs of operations incurred to earn throughput margin.
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Suppose you wish to analyze the change in the equilibrium price of lumber as a result of forest fires in the West. What would your first step be?
a. to decide whether the fires shift demand or supply b. to identify the new equilibrium point c. to decide whether the fires affect the price d. to decide whether the fires affect the quantity demanded
The net present value approach is based on a basic precept of finance theory that a dollar today is worth less than a dollar in the future
Indicate whether the statement is true or false