Dependent Demand and Independent Demand Items Differ in That

question 120

Multiple Choice

Dependent demand and independent demand items differ in that

• A) for any product, all components are dependent-demand items.
• B) the need for independent-demand items is forecast.
• C) the need for dependent-demand items is calculated.
• D) All of the above are true.
• E) None of the above are true.

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Definitions:

Commercial Substance

An economic concept indicating that a transaction significantly alters the cash flows or financial position of an entity.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale, such as machinery, buildings, and land.

Recognized Immediately

Financial transactions or events are recorded as soon as they occur, without delay in the accounting period.

Real Estate Commissions

Fees paid to real estate agents for services in facilitating the buying or selling of real estate properties, usually a percentage of the sale price.