If an Available-To-Promise (ATP) for Any Period Is Negative, the Deficit

question 16

Multiple Choice

If an available-to-promise (ATP) for any period is negative, the deficit must be subtracted from the:

• A) Master Production Schedule
• B) Most recent positive ATP
• C) Beginning inventory
• D) Bill of materials

---

Definitions:

Depreciation Expense

The portion of the total cost of a tangible asset that is charged as an expense in a particular accounting period due to its usage and wear and tear.

Financial Structure

The mix of a company's liabilities and shareholders' equity used to finance its assets, including short-term and long-term debt, as well as equity capital.

Operating Cash Flows

Cash generated from a company's normal business operations, reflecting how well it can generate cash to pay debts and fund its operating expenses.

Blue-Chip Companies

Businesses recognized for their financial stability, reliability, ability to generate steady profit, and having a long history of paying dividends.