Application of the theory of constraints will improve all of the following EXCEPT
A)net income.
B)debt-to-equity ratio.
C)cash flow.
D)return on investment.

Question

Quizplus · Accepted Answer

The theory of constraints focuses on identifying and removing bottlenecks or constraints in a system in order to improve overall performance. This can lead to increased net income, improved cash flow, and higher returns on investment. However, it may not directly impact a company's debt-to-equity ratio, which is determined by the company's financing decisions and overall financial structure.

Application of the Theory of Constraints Will Improve All of the Following