Which of the following is a theory of constraints (TOC) measure of product profitability that equals price less materials cost, including all purchased components and materials handling costs?
A) Takt time.
B) Throughput margin.
C) Profitability margin.
D) Price analysis.

Question

Quizplus · Accepted Answer

Throughput margin is a theory of constraints (TOC) measure of product profitability that equals price less materials cost, including all purchased components and materials handling costs. Takt time is a measure of the rate at which products must be produced to meet customer demand. Profitability margin is not a recognized TOC measure. Price analysis involves comparing prices to determine the best value for a product or service.

Which of the Following Is a Theory of Constraints (TOC)