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kiruha [24]
3 years ago
10

From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simu

ltaneously reducing inventory and reducing operating expense. True or false?
Business
1 answer:
OverLord2011 [107]3 years ago
8 0

Answer:

True

Explanation:

The theory of constraints focuses on establishing the most important limiting factor or constraint in a business and improve it in order to improve the whole company's performance.

In simple terms, a company recognizes their greatest weakness and tries to improve it, so that it no longer represents a limitation.

This theory was originally developed for manufacturing companies, and it was meant to reduce bottlenecks (manufacturing constraints). Therefore one of its main goals is to lower inventory levels and operating costs while increasing production output.

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Center Chemical Company's Industrial Division makes 400,000 gallons of rubbing alcohol each year and has enough capacity to manu
Fittoniya [83]

Answer:

cost-based transfer pricing

Explanation:

If the firm uses negociated rtansfer pricing they will stablish the transfer price based on manager bargain skill and leverage of each division. The CEO will not a grip on controlling cost across all dvisions, the managers will.

Therefore the best option is to go with a cost-based transfer pricing. The CEO can determinatethe method to determinate the cost and indriectly the cost across all divisions.

5 0
3 years ago
Mikey W. Smitty, an emerging rapper, is getting ready to cut his first CD, called "Western Rap." He is looking for a production
Gekata [30.6K]

Answer:

(i) 900 CDs

(ii) Greater than; $1,650

Explanation:

(1) Break-event point will be when the contribution margin from total sales is equal to fixed costs,

Contribution Margin = Selling price - variable cost

                                  = $(21.5 - 9.5)

                                  = $12

Contribution Margin *Number of CDs sold = $10,800

Break-even point for Studio A = 10,800 ÷ 12

                                                    = 900 CDs

(2) Studio A would be more profitable when the extra profit earned from per unit sale of CD exceeds the extra fixed cost given in Studio A.

Extra Contribution margin in Studio A = $(12-10)

                                                               = $2

Extra Fixed cost in Studio A = $(10,800 - 7,500)

                                               = $3,300

Studio A should be chosen if sales is greater than (3300/2) = $1,650.

4 0
2 years ago
Washington has an extensive collection of baseball cards. He wants to know how much his mint condition, rookie-year Hank Aaron c
Anit [1.1K]

<u>Explanation:</u>

It is recommended by some to determine a card's current market value of by determining whether the card has been professionally graded by the Professional Sports Authenticator, if yes, then one can check up the value on the Sports Market Report (SMR).

However, the Hank Aaron card is Estimated to have a PSA 9 Mint Value of $17,500.

7 0
3 years ago
The most effective form of business organization for raising capital is the a. sole proprietorship. b. syndicate. c. joint ventu
Sergio039 [100]

Answer: option E -Corporation

Explanation:

Corporation is the most effective form of business organization for raising capital

6 0
3 years ago
Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2021, are presented below:
Elza [17]

Answer:

A.) 33,000

Explanation:

The computation of the gross profit is as follows;

But before that following calculations need to be done

Percentage of completion = Cost incurred in 2020 ÷ Total cost

where,

Total cost = Cost incurred + estimated cost

= $180,000 + $200,000

= $380,000

Now

Percentage of completion is

= $180,000 ÷ $380,000

= 47.368%

Now  

Revenue to be recognized in year 2020 is

= contract revenue × percentage of completion

= $450,000 × 47.368%

= $213,156

So,

Gross profit = Revenue - Cost

= $213,156 - $180,000

= $33,156

= $33,000

8 0
2 years ago
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