Which of the Following Is True of a Master Production

question 4

Multiple Choice

Which of the following is true of a master production schedule (MPS)

• A) Its primary output is a time-phased report for scheduling raw materials purchase.
• B) It provides a means for evaluating alternative schedules in terms of capacity requirements.
• C) Its input is obtained from the materials requirements planning.
• D) It projects the requirements for the individual parts based on the demand for the finished goods.

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Definitions:

Machine Breakdowns

Instances when machinery or equipment fails to operate, causing interruptions in production or operations.

Cost Variance

The differences between actual and standard costs.

Standard Cost

A detailed estimate of what a product should cost.

Actual Cost

The actual amount spent on goods, services, or other expenses, as opposed to budgeted or standard costs, including all direct and indirect costs.