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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › throughput accounting
Which of the following statements is NOT consistent with the theory of constraints?
A. There is no inventory of work in progress or finished good held
B. Raw materials are converted into sales as quickly as possible
C. Operations prior to the bottleneck operate at the same level as the bottleneck
D. Conversion costs and investment costs are kept to a minimum
A is the answer.
but i don’t understand why not C, when bottleneck is found then operations change according to the bottleneck right? but why is it written here same level ??
They will all be at the same level as the bottleneck (other operations cannot do more because everything is limited by the bottleneck). This is consistent with the theory and so C is not correct.