Question

The rate at which the entire organization generates money through sales for a product or service is

• A. Operating expense
• B. Inventory
• C. Takt time
• D. Throughput

Answer 1

Answer:

D. Throughput

Throughput is the rate at which an organization generates money through sales for a product or service. Operating expenses are costs involved in day-to-day operations, inventory is goods available for sale, and takt time is the average time between production of one unit and the next. Manufacturing throughput time is the duration for a product to pass through the manufacturing process.