Which of the following statements is correct?
A)The theory of constraints focuses on revenue and cost management when dealing with bottlenecks.
B)The theory of constraints decreases throughput contribution (sales dollars minus direct material costs).
C)The theory of constraints maximizes investments.
D)The theory of constraints manages production by letting non-constrained activities set the pace for the rest of operations.

Question

Quizplus · Accepted Answer

The theory of constraints aims to identify and manage bottlenecks in a system. One of the main goals is to increase throughput, which is the amount of revenue generated by a system. Therefore, the theory focuses on revenue and cost management when dealing with bottlenecks. The other options (B, C, and D) are incorrect statements about the theory of constraints.

Which of the Following Statements Is Correct