The Three Main Inputs to an MRP System Are the Bill-Of-Materials

question 71

True/False

The three main inputs to an MRP system are the bill-of-materials, the master schedule, and the inventory records file.

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Definitions:

Worksheet Entry

An adjustment recorded on a worksheet, which is not yet posted to formal accounting records, often used in the process of preparing financial statements.

Equity Method

An accounting technique used by companies to record their investments in other companies, wherein the investment is initially recorded at cost and subsequently adjusted to account for the investor's share of the investee's profits or losses.

Intra-entity Gross Profit

Gross profit arising from transactions within the same company, often requiring elimination during consolidation.

Cost of Goods Sold

The direct expenses related to the production of goods sold by a company, including materials and labor costs.