Which of the Following Statements About MRP Is True

question 42

Multiple Choice

Which of the following statements about MRP is True?

• A) To be classified as a successful MRP user, a company must use either the L4L or POQ rules for lot sizing.
• B) MRP gross requirements for a parent item are equal to the planned order releases of its components.
• C) MRP logic is based on the logic of uniform, continuous demand, and item independence.
• D) MRP gross requirements for a component depend on the planned order releases of its immediate parents.

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Definitions:

Basic Earnings Per Share

A measure of a company's profitability that is calculated by dividing net income by the average number of common shares outstanding during a period.

Stockholders' Equity Disclosures

Information provided to shareholders about the equity portion of the balance sheet, detailing components like common stock and retained earnings.

GAAP

Generally Accepted Accounting Principles (GAAP) are a collection of commonly-followed accounting rules and standards for financial reporting and auditing in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that aims to ensure consistency and transparency in financial reporting globally.