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The Present Value of an Off-Balance-Sheet Item Is Referred to as Its

question 6

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The present value of an off-balance-sheet item is referred to as its notional value.


Definitions:

Gross Requirements

The total amount of materials or products needed before any adjustments for inventory or scheduled production.

Net Requirements

The total amount of a material or product required, taking into account current inventory and any orders in process, to meet customer demand.

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