The theory of constraints analyzes fixed costs and considers short-run costs to be variable costs.

Name: The theory of constraints analyzes fixed costs and considers short-run costs to be variable costs.
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The theory of constraints recognizes that fixed costs exist and cannot be readily adjusted in the short-run. However, it does consider some fixed costs as potentially variable in the long-run if they can be reduced or eliminated through strategic decisions.

The Theory of Constraints Analyzes Fixed Costs and Considers Short-Run