A Master Production Schedule Shows the Beginning Inventory Is 50

question 1

Multiple Choice

A master production schedule shows the beginning inventory is 50 units,the forecast is 200 units,and actual customer orders are 220 units.What is the quantity that is available to promise in period 1?

• A)50
• B)150
• C)170
• D)0

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Definitions:

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Variable Cost

Costs that vary directly with the level of production output or volume, such as raw materials and direct labor.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours worked, multiplied by the standard labor rate.

Standard Hours

A measure used in accounting to indicate the expected amount of time required to complete a task or project.