S1: Move time and storage time are examples of nonvalue added activities that can be eliminated without deterioration of product quality, performance, or perceived value to the customers. S2: External failure costs result from the identification of defects during the appraisal process. Such costs include scrap, rejected products, rework, and downtime. S3: It is generally better to incur internal failure costs than to incur external failure costs. S4: Fewer Outputs, same inputs can be considered as counter productive

A. ALL STATEMENTS ARE TRUE B. 3 STATEMENTS ARE TRUE C. 2 STATEMENTS ARE TRUE D. 1 STATEMENTS ARE TRUE

Which one of the following is not one of the five steps in Theory of Constraints analysis?

A. Identify the binding constraints B.Determine the most efficient utilization for each binding constraint

C. Manage the flow through the binding constraint D. Deduct capacity from the constraint S S1.THE REPORTS Used evaluate the performance of managers and the operations they control are referred to as performance reports. S2: Performance report frequently involve a comparison of current period performance with performance in a prior period or with planned (budgeted) performance. S3: Managers follow the principle of management by exception when using performance reports. S4: Managers can compare actual results with planned results and decide if corrective action is necessary. A. ALL STATEMENTS ARE TRUE B. 3 STATEMENTS ARE TRUE C. 2 STATEMENTS ARE TRUE D. 1 STATEMENTS ARE TRUE