7.(TCO 5)Producing more nonbottleneck output(Points : 5)

creates more inventory and increases throughput contribution.

creates less pressure for the bottleneck workstations.

allows for the maximization of overall contribution.

creates more inventory, but does not increase throughput contribution

8.(TCO 5) Jensen Company has relevant costs of $80 per unit to manufacture Part A. Acurrent supplier offers to make Part A for $70 per unit. If capacity is constrained, the opportunity cost of buying Part A from the supplier is(Points : 5)

0.

$10,000.

$70,000.

indeterminable.

9.(TCO 3)The cost function y=100+10X(Points : 5)

has a slope coefficient of 100.

is a nonlinear.

has an intercept of 100.

represents a fixed cost.

10.(TCO 4)Opportunitycosts(Points : 5)

result in a cash outlay.

only are considered when selecting among alternatives.

are recorded in the accounting records.

should be maximized for the best decision.