Network Models Are Used To

question 106

Multiple Choice

Network models are used to:

• A) make future projections useful in the planning process.
• B) control inventories by mathematically determining how much to automatically order and when.
• C) allocate service personnel and workstations based on alternative workload demands.
• D) calculate how best to allocate production among different machines.
• E) break large tasks into smaller components and diagram them in step-by-step sequences.

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Definitions:

Discounts Lost

Charges incurred from not taking advantage of early payment discounts offered by suppliers.

Net Method

An accounting method for recording purchases where the purchase price includes a cash discount for early payment.

Periodic Inventory System

An accounting method where inventory is physically counted and valued at set intervals, affecting the cost of goods sold calculation.

Discounts Lost

Refers to the additional cost a company incurs for not taking advantage of the cash discounts offered by suppliers for early payments.