Under throughput costing, the only cost considered to be truly variable in the short run is:
Answer(s): D
Throughput costing, also called super variable costing, recognizes only direct materials costs as being truly variable and thus relevant to the calculation of throughput margin.
The immediate goal of a theory of constraints (TOC) analysis is to:
Answer(s): C
A basic principle of TOC analysis is that short-term profit maximization requires maximizing the contribution margin through the constraint, called the throughput margin or throughput contribution.
In a theory of constraints (TOC) analysis, the bottleneck operation (the constraint) corresponds to which part of the drum-buffer-rope model?
Answer(s): B
Production flow through a constraint is managed using the drum-buffer-rope (DBR) system. The drum (i.e., the beat to which a production process marches) is the bottleneck operation. The constraint sets the pace for the entire process. The buffer is a minimal amount of work-in-process input to the drum that is maintained to ensure that it is always in operation. The rope is the sequence of activities preceding and including the bottleneck operation that must be coordinated to avoid inventory buildup.
The process model used in a theory of constraints (TOC) analysis is called:
Production flow through a constraint is managed using the drum-buffer-rope (DBR) system. The drum (i.e.. the beat to which a production process marches) is the bottleneck operation. The constraint sets the pace for the entire process. The buffer is a minimal amount of work-in-process input to the drum that is maintained to ensure that it is always in operation. The rope is the sequence of activities preceding and including the bottleneck operation that must be coordinated to avoid inventory buildup.
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