APICS Certified Supply Chain Professional (CSCP) — Question 51

Which of the following objectives is a major principle of theory of constraints (TOC) accounting when applied to a supply chain?

Answer options

• A. Total inventory reduction
• B. Maximize process utilization
• C. Maximize revenue generation
• D. Product design simplification

Correct answer: C

Explanation

The correct answer, C, emphasizes the importance of maximizing revenue generation as a primary goal of TOC accounting. While reducing inventory, maximizing utilization, and simplifying product design are important, they are considered secondary objectives that support the overarching aim of increasing revenue.