29uestion 71c): TOC - Classification 4 Marks Classify the following items under the three measures used in the Theory of Constraints: viz Throughput Contribution, Operating costs and Investments. Same as Page 12.1, Q.No.4 Item Classification Item Classification 1. Research and Development Cost Investments and Inventory 5. Labour Cost Other Operating Costs 2. Stock of Raw Materials Investments and Inventory 6. Rent/Utilities Other Operating costs 3. Raw Materials used for Production Throughput Contribution 7. Sales Throughput Contribution 4. Cost of Equipments and Buildings Investments and Inventory 8. Depreciation Other Operating costs Question 7(d): Budgeting 4 Marks 1. Is it necessary to start preparing a Functional Budget only after identifying the Principal Budget Factor? Explain. 2. Is it practical to make a Flexible Production Cost Budget before the commencement of production activities of a certain production period? Why