Firms ability to make money


I) According to the theory of constraints, which of the following financial measurements can be used to measure the firm's ability to make money?

• Operating expenses
• Dividends
• Sales
• Return on investment

II) Deming's PDCA (plan, do, check, and act) cycle underlies what inherent Six Sigma principle?

• Continuous improvement
• Control charting
• Standard deviation
• Project management

III) Which of the following is usually included as an inventory holding cost?

• Order placing
• Quantity discounts
• Breakage
• Typing up an order

IV) Which production process term best describes the situation when activities in a stage of production must stop because there is no work?

• Blocking
• Starving
• Staging
• Buffering

V) In a Gantt chart the vertical axis represents which of the following?

• Time
• Revenue
• Tasks
• Cost

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Operation Management: Firms ability to make money
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