Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
TOC Main Page | TOC
Discussion Questions | Graduate Management Accounting Course
(Note: Questions 1-35 are from the extra MC questions for MAAW's Textbook Chapter 8)
1. In the theory of constraints, throughput refers to
b. sales dollars less direct materials costs.
2. In the theory of constraints, the pace of a non-bottleneck production operation is controlled by the pace of
c. a bottleneck operation.
3. One of the key ideas in Goldratt's theory of constraints is to maximize throughput by
b. balancing the flow of work in the plant.
4. An objective in the theory of constraints is to
b. balance the flow of work by allowing the most binding constraint to set the pace for the plant.
5. The drum in a theory of constraints system
d. sets the pace.
6. The rope in a theory of constraints system
a. enforces the pace.
7. The buffer in a theory of constraints system
c. protects the pace.
8. In a theory of constraints system, throughput is
a. the money flowing into the system.
9. In the theory of constraints, throughput is
d. a. and b.
10. In the theory of constraints, a constraint is
e. a., b. and c.
11. A bottleneck is where
d. a. and b.
12. In the theory of constraints, inventory includes
e. a., b. and c.
13. When comparing the return of investment calculations in throughput accounting and GAAP accounting, which of the following will be different when the amount of inventory changes?
e. a., b. and c.
14. According to Goldratt, floating bottlenecks are created by
d. the combination of a., b. and c.
15. According to the theory of constraints, a non-constraint is utilized when
c. when it is producing throughput.
16. In the theory of constraints, balancing the flow of work requires
b. working at the pace set by the constraint.
17. Using Goldratt’s "evaporating cloud" technique refers to
a. identifying a faulty assumption in a conflict or issue.
18. Goldratt is opposed to
d. a. and c.
19. In the theory of constraints, the goal is
c. to make money now and in the future.
20. Throughput is
a. money generated by the company.
21. In TOC, operating expense excludes
b. direct material cost.
22. In the theory of constraints, inventory is defined as
b. total assets.
23. In the theory of constraints, decreasing inventory (as defined in TOC) without affecting throughput or operating expense, would automatically
c. increase return on investment.
24. According to Goldratt, floating bottlenecks are caused by the combination of
d. a balanced plant, dependent events and statistical fluctuations.
25. In the theory of constraints, a non-bottleneck operation producing at it’s own pace would
b. always be activated, but not always utilized.
26. In the drum-buffer-rope method, material inventory buffers are placed
d. directly upstream from the drum.
27. According to the theory of constraints, which of the following is, or are, global measurements
c. throughput.
28. In the theory of constraints, the goal is
e. none of the above.
29. ROI in the theory of constraints is
d. (Throughput - operating expense)/Inventory.
30. In TOC, operating expense excludes
e. None of these.
31. In the theory of constraints, product inventory (i.e., inventory in traditional accounting) includes
a. direct materials.
32. In the theory of constraints, which of the following represent assets?
a. direct materials.
33. In the theory of constraints, increasing inventory (as defined in TOC) without affecting throughput or operating expense, would automatically
d. decrease return on investment.
34. When finished goods inventory increases, (i.e., where the number of products sold is less than the number of products produced) net income based on throughput costing
b. will be less than net income based on either absorption costing or direct costing.
35. According to the theory of constraints, which of the following is not, or are not global measurements?
d. a and b.
36. The dice game or match bowl experiment was designed to show that
d. a balanced plant is not obtainable.
37. Goldratt’s main criticism of the "cost mentality" is that
b. thinking in terms of costs motivates managers to optimize the parts of a system rather than the whole.
38. A technique associated with the theory of constraints is referred to as the drum-buffer-rope method. In this method the most binding constraint is the
c. drum
39. Which term (or terms) below is (are) associated with floating bottlenecks?
e. a and c.
40. Which of the following concepts or philosophies tend to promote more product diversity?
a. TOC