Match each definition that follows with the term (a-e) it defines.
-Strategy that focuses on reducing bottlenecks
A)Opportunity cost
B)Sunk cost
C)Theory of constraints
D)Differential analysis
E)Product cost distortion

Question

Quizplus · Accepted Answer

The theory of constraints is a strategy that focuses on identifying and reducing bottlenecks in order to improve overall efficiency and profitability. Opportunity cost refers to the cost of sacrificing one opportunity for another, sunk cost is a cost that has already been incurred and cannot be recovered, differential analysis is a decision-making tool that compares the costs and benefits of different options, and product cost distortion refers to the misallocation of costs to different products or services.

Match Each Definition That Follows with the Term (A-E) It