QUESTION: 93

Which of the following are TRUE about the theory of constraints? Select ALL that apply.

Each resource should be put to its most profitable use
Relieve all the constraints in a system simultaneously to ensure optimality
Ensure that each constraint is being used efficiently
Relieve constraints until the cost of relieving the last constraint exceeds the benefit

Answer(s): A,C,D

An investment centre is appraising a potential project that is expected to yield a Return on Investment (ROI) of 12%.

Without the project the investment centre expects to earn an ROI of 14%. The cost of capital is 10%.

What would be the impact on the investment centre's performance measures if the project is accepted?

Residual Income would decrease and ROI would increase.
Residual Income would decrease and ROI would decrease.
Residual Income would increase and ROI would increase.
Residual Income would increase and ROI would decrease.

Answer(s): D

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QUESTION: 95

DRAG DROP (Drag and Drop is not supported)

Place the correct category of Value Chain activity against each of the activities described below.

See Explanation section for answer.

Answer(s): A

Explanation:

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QUESTION: 96

A long established organization has recognised the need to make urgent changes to the way it operates in order to remain competitive. The organization wishes to dramatically improve its performance through a fundamental rethinking and radical redesign of its existing activities.

Which of the following techniques should be used to achieve this?

Functional analysis
Kaizen costing
Business process re-engineering
Process innovation

Answer(s): C

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QUESTION: 93

QUESTION: 94

QUESTION: 95

Explanation:

QUESTION: 96