The theory of constraints is used for cost analysis when:
A)a manufacturing company produces multiple products and uses multiple manufacturing facilities and /or machines
B)using a long-term time horizon
C)operating costs are assumed fixed
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

The theory of constraints is commonly used in manufacturing companies that have multiple products and facilities or machines. It helps identify the constraints or bottlenecks in the production process and how to optimize them to increase efficiency and reduce costs. Using a long-term time horizon or assuming fixed operating costs are not necessarily related to the application of the theory of constraints.

The Theory of Constraints Is Used for Cost Analysis When