Question

In the theory of constraints, increasing inventory without affecting throughput or operating expense, would automatically a decrease net income b increase net income c decrease return on investment d increase return on investment

Answer 1

Answer:

The correct answer is decreasing return on investment which is option c in this question.

Explanation:

According to the theory of constraints, when the inventory is getting increased, without showing any effects on operating expense, then it by default decreases the return on the investment. Thus we have to select the option c as the answer for this particular question here.