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2. The Theory of Constraints suggests that in order to increase efficiency, an organization should look to improve by A. Maximizing the effectiveness of
2. The Theory of Constraints suggests that in order to increase efficiency, an organization should look to improve by A. Maximizing the effectiveness of activities the organization does best. B. Cutting out the portion of the manufacturing process that the company does not do well. C. Improving all links in production process. D. None of the above are true. 3. If we were to transfer all costs in FGI into COGS, which of the following would NOT be true? A. We would have an exact dollar amount for direct materials, which would flow through both accounts. B. We would have an exact dollar amount for direct labor, which would flow through both accounts. C. We would have an exact number for manufacturing overhead, which would flow through both accounts. D. All of the above are true. 4. Sales price per unit is held constant. CM ratio goes down. Unit sales remain the same, as do fixed costs. Which of the following must have occurred? A. Contribution margin increased. B. Net income increased. C. Total sales decreased. D. None of these are true.
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