1. Input measures of capacity are inherently more accurate than output measures of capacity.

Answer: False
Reference: The Theory of Constraints
Difficulty: Moderate
Keywords: input, output, measure, capacity

2. Utilization is the degree to which equipment, space, or labor is currently being used.
Answer: True
Reference: The Theory of Constraints
Difficulty: Easy
Keywords: utilization, degree, used

3. Operating processes close to their capacity can result in low customer satisfaction and even losing
money despite high sales levels.
Answer: True
Reference: The Theory of Constraints
Difficulty: Moderate
Keywords: capacity, satisfaction