Which Type of Operational Planning Uses Inventory Management and Control

question 17

Multiple Choice

Which type of operational planning uses inventory management and control systems?

• A) Strategic planning
• B) Tactical planning
• C) Operational planning and control
• D) All of these depending on the industry

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Definitions:

Variable Costing

A technique in accounting that encompasses only costs that vary with production (including direct materials, direct labor, and variable manufacturing overhead) in the pricing of products.

Period Cost

Expenses that are not directly tied to the production of goods and are instead associated with time periods, such as administrative salaries.

Variable Costing

A method of cost accounting where only variable production costs are included in product costs, with fixed overhead expenses treated as period costs.

Unit Product Cost

The total cost associated with producing a single unit of a product, calculated by dividing the total production costs by the number of units produced.