Which of the Following Statements Is TRUE About the MRP

question 76

Multiple Choice

Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?

• A)The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent.
• B)The quantity of gross requirements for a child item is equal to the quantity of planned order release(s)multiplied by the number of child items used in the parent assembly.
• C)The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent.
• D)The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent.
• E)All of the above are true.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.

Year-End Closing Entries

Journal entries made at the end of an accounting period to prepare the accounts for the next period by clearing out revenues and expenses to the income summary.

Owner's Drawings

The withdrawal of business assets by the owner for personal use, which reduces the equity of the owner in the business.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain expenses.