Materials Requirements Planning Inventory Control Systems Are a ____ Type

question 119

Multiple Choice

Materials requirements planning inventory control systems are a ____ type of system based on estimated demand.

• A) Push
• B) Pull
• C) Stand-alone
• D) Preceding

---

Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries of permanent staff, and equipment depreciation.

Product Cost

The total cost associated with producing goods, including raw materials, labor, and overhead costs.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Fixed Manufacturing Overhead

Costs that do not change with the level of production output and are essential for the manufacturing process, such as rent, property taxes, and salaries of permanent staff.