The theory of constraints relies on three measures: throughput contribution, investments, and...

Question

The theory of constraints relies on three measures: throughput contribution, investments, and operating costs. Define these three measures in the context of the theory of constraints.

Pranjal · Accepted Answer

MANAGERIAL ACCOUNTING
Question:
The theory of constraints relies on three measures: throughput contribution, investments, and operating costs. Define these three measures in the context of the theory of constraints.
Answer:
Throughput Contribution:
Throughput Contribution (TC) is the difference between the revenues and the direct materials for the quantity of products sold during a given period. The formula, therefore, for the throughput contribution may be stated herein as below:
Conceptually,

The theory of constraints relies on three measures: throughput contribution, investments, and operating costs. Define these three measures in the context of the theory of constraints.

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment