According to the theory of constraints, which of the following is an operational measurement that can be used to measure the firm's ability to make money?
A) Inventory
B) Sales
C) Operating revenue
D) Unit cost
E) Overhead per unit

Question

Quizplus · Accepted Answer

Inventory is considered an operational measurement in the theory of constraints as it represents tied-up capital and affects the firm's ability to make money by influencing throughput and operational efficiency.

According to the Theory of Constraints, Which of the Following