Which of the Following Statements Concerning MRP Is True

question 37

Multiple Choice

Which of the following statements concerning MRP is True?

• A) Dependent-demand items tend to experience relatively constant demand rates.
• B) MRP systems use independent demands for each component item.
• C) Capacity requirements planning (CRP) uses open orders (scheduled receipts) and planned order releases to estimate capacity requirements for critical workstations.
• D) The most accurate way to forecast dependent demand is to examine past usage rates.

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Definitions:

Product Costs

Costs directly tied to the creation of a product, including raw materials, labor, and manufacturing overhead.

Manufacturing Process

A sequence of operations and processes designed to create a specific product from raw materials or components.

Balance Sheet

A list of the assets, liabilities, and stockholders’ equity as of a specific date, usually at the close of the last day of a month or a year.

Direct Labor

The expenses incurred on salaries for workers directly engaged in manufacturing goods or providing services.