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:

Actual Rate

The current interest rate or the actual cost rate in various financial and business contexts.

Standard Rate

A predetermined rate often used for allocating costs to activities or products, based on budgeted or historical data.

Completed Unit

A unit of product that has undergone the entire production process and is ready for sale or distribution.

Direct Labor Time Variance

The difference between the actual hours worked by employees at the actual labor rate and the standard hours worked at the standard labor rate, used to measure efficiency and productivity in production.