Three Inputs to the MRP Process Are

question 11

Multiple Choice

Three inputs to the MRP process are:

• A) production activity control, purchasing, and the production plan
• B) inventory status, the master production schedule, and the product structure
• C) the master production schedule, inventory status, and the capacity requirements plan
• D) the product structure, production activity control, and inventory status
• E) the product structure, production activity control, and the master production schedule

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Definitions:

Variable Production Costs

Variable production costs refer to expenses that change in direct proportion to the volume of production, such as raw materials and labor costs.

Sales Commissions

Payments made to sales personnel based on the sales volume or value they have achieved.

Opportunity Cost

The potential benefit that is given up when one alternative is selected over another.

Variable Selling

Variable selling costs are expenses that fluctuate with sales volume, such as commissions and credit card fees, which increase as sales increase.