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Which of the following statements is true regarding the Theory of Constraints? A binding constraint is the constraint that does not limit your ability to increase profits. Organizations have unlimited access to resources required for their operations. Companies should make production choices to utilize the binding constraint so that it maximizes their profits. Jimbo company makes two products that both use a scarce resource, platinum. Jimbo company has a limited amount of platinum. What in should Jimbo use to determine which of the two products to prioritize and produce as much as possible? O Traceable Fixed costs associated with each product line Contribution Margin per unit of scarce resource (per ounce of platinum) O Contribution Margin per unit of product Which of the following methods for making capital budgeting decisions takes into account the Time Value of Money? O Both the Net Present Value method and the Internal Rate of Return method Internal Rate of Return method Simple Rate of Return method Payback method Net Present Value method If a company has a cash shortage, which of the following methods would help determine how quickly they would recover their initial investment? Internal Rate of Return method Payback method Simple Rate of Return method Net Present Value method Hercules Company is deciding whether it is better to buy machine X or machine Y. Machine X costs $15,000, has a useful life of 10 years, and will reduce operating costs by $3,000 per year. Machine Y costs $20,000, has a useful life of 8 years, and will reduce operating costs by $5,000 per year. According to the payback method, what is the difference in the payback periods for Machine X and Machine Y? Machine Y takes 1 year longer to pay back than Machine X Machine Y takes 2 years longer to pay back than Machine X O Machine X takes 2 years longer to pay track than Machine Y Machine X takes 1 year longer to pay back than Machine Y