Table 13.5 -Use the Information in Table 13.5.Which of the Statements Concerning

question 82

Multiple Choice

Table 13.5

-Use the information in Table 13.5.Which of the statements concerning item RST is TRUE? (Examine each answer independently.)

• A) If the safety stock level were 30 units instead of 0 units, the planned receipt in week 7 would be 110 units.
• B) If the scheduled receipt in week 2 were delayed until week 3, there would be a planned order release in week 1.
• C) If the safety stock level was 20 units instead of 0 units, there would be a planned order release in week 2.
• D) If the gross requirements for week 8 were 100 units instead of 60 units, the projected on-hand inventory for week 8 would be 0 units.

Understand the connection between planning and control in the management process.

Identify the benefits of effective planning.

Recognize the difference between strategic, tactical, and operational planning.

Acknowledge the importance of implementation in realizing plans.

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Definitions:

Contribution Margin Ratio

The portion of sales revenue that exceeds variable costs, expressed as a percentage.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.

Pretax Income

The income earned by a business before any taxes have been deducted.