Home » IIA » IIA-CIA-Part3 » The immediate goal of a theory of constraints (TOC) analysis is to:
The immediate goal of a theory of constraints (TOC) analysis is to:
A. Maximize the efficiency of the entire production process.
B. Minimize direct materials cost.
C. Maximize contribution margin through the constraint.
D. Smooth production flow to eliminate backup in the system.
Correct Answer: C
Explanation/Reference:
Explanation:
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.
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