Which of the Following Statements About Aggregate Planning Is True

question 4

Multiple Choice

Which of the following statements about aggregate planning is true?

• A) Advertising/promotion is a way of manipulating product or service supply.
• B) Work station loading and job assignments are examples of aggregate planning.
• C) Overtime/idle time is a way of manipulating product or service demand.
• D) Aggregate planning uses the adjustable part of capacity to meet production requirements.
• E) Aggregate planning is also known as aggregate sequencing.

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Definitions:

Sales Budget

An estimate of the expected sales revenue a company aims to achieve in a specific period, including both volume and value of sales.

Required Production

The quantity of goods that must be produced during a certain period to meet customer demand and inventory policies.

Budgeted Sales

An estimated amount of sales in units or dollars that a company plans to achieve during a certain period, often used for planning and operational purposes.

Finished Goods Inventory

Finished goods inventory consists of items that have completed the manufacturing process and are ready for sale.