A Master Production Schedule Shows the Beginning Inventory Is 100

question 8

Multiple Choice

A master production schedule shows the beginning inventory is 100 units,the forecast is 250 units,and actual customer orders are 400 units.Using a lot-for-lot rule,what is the MPS quantity for period 1?

• A)150
• B)250
• C)300
• D)400

---

Definitions:

Machinery

Fixed assets used in the operation of a business to produce goods or services, often having a significant lifespan and being subject to depreciation.

Installation Costs

Expenditures associated with setting up equipment or machinery for its intended use.

Fixed Assets

Long-term tangible assets that a company owns and uses in its operations to generate income, not expected to be converted into cash within a year.

Long-Term Assets

Assets owned by a company that have a useful life of more than one year, such as property, plant, and equipment.