Which of the Following Statements Regarding MRP in Services Is

question 133

Multiple Choice

Which of the following statements regarding MRP in services is true?

• A) MRP is for manufacturing only, and is not applicable to services.
• B) MRP can be used in services, but only those that offer very limited customization.
• C) MRP does not work in services because there is no dependent demand.
• D) Services such as restaurant meals illustrate dependent demand, and require product structure trees, bills-of-material, and scheduling.
• E) None of the above is true.

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Definitions:

Creditor

An individual or institution to whom money is owed by the debtor or the borrower.

Cash Investment

Cash investment refers to funds invested into a business or market with the expectation of generating a financial return.

Accounting Equation

Represents the fundamental relationship in accounting: Assets = Liabilities + Equity, ensuring a balance in a company's financial statements.

Owner's Equity

The residual interest in the assets of the entity after subtracting liabilities, essentially representing the owner's claim against the company's assets.