Which of the Following Statements About Aggregate Planning Is True

question 142

Multiple Choice

Which of the following statements about aggregate planning is true?

• A) The development of mathematical models has allowed aggregate planners to discontinue use of trial-and-error methods.
• B) In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand.
• C) A pure chase strategy allows lower inventories when compared to pure level scheduling.
• D) Disaggregation turns the master production schedule into an intermediate term master plan.
• E) Disaggregation results in the material purchasing system.

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset that evenly spreads the cost over its useful life.

Bond Interest Expense

The cost associated with the interest payments on an issuer's bonds payable.

Straight-Line Method

A method of calculating depreciation of an asset that allocates an equal portion of the asset's cost to each year of its useful life.

Discount on Bonds Payable

The difference when bonds are issued for less than their face value.