__________ Systems, Help to Determine When Orders Should Be Placed

question 36

Multiple Choice

__________ systems, help to determine when orders should be placed for various components to avoid stock outs and excess inventory.

• A) Business
• B) DRP
• C) MRP
• D) Information

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Definitions:

Favourable Variances

Financial indicators that actual revenues are higher or costs are lower than what was originally planned or budgeted.

Standard Costs

Predetermined costs for manufacturing a product or providing a service, used as benchmarks for measuring performance.

Product Costing

The process of determining the total cost involved in the production of a product, including material, labor, and overhead expenses.

Actual Costs

The actual costs are the genuine expenditures incurred by a business during production, operation, or other activities, as opposed to estimated or budgeted costs.