Which two of following statements about throughput accounting and the theory of constraints are true?

Unless output capacity is greater than sales demand, there will always be a binding constraint.
The production capacity of a bottleneck resource should determine the production schedule for the organisation as a whole.

Unless output capacity is greater than sales demand, there will always be a binding constraint and The production capacity of a bottleneck resource should determine the production schedule for the organisation as a whole. Output from a binding constraint should be used immediately, not built up as inventory, because it is the factor that constrains output and sales. Some inventory may build up before the binding constraint, but the general principle in throughput accounting is that any inventory is undesirable. The production capacity of a bottleneck resource should determine the production schedule for the organisation as a whole. This means inevitably that there will be idle time in other parts of production where capacity is greater.