Which of the following is a valid assumption of the theory of constraints?
A)few costs are variable--generally only materials,purchased parts,piecework labor,and energy to run machines.
B)most direct labor costs are fixed.
C)most overhead costs are fixed.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

The theory of constraints assumes that within any manufacturing or production process, there are bottlenecks (constraints) that limit the overall output. The assumptions listed in options A, B, and C align with this theory by suggesting that most costs (direct labor, overhead) are fixed and not easily adjusted in the short term, focusing attention on managing constraints rather than on variable costs.

Which of the Following Is a Valid Assumption of the Theory