The Quantity Required of a Dependent Demand Item Is Computed

question 58

True/False

The quantity required of a dependent demand item is computed from the demand for the final products in which the item is used.

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Definitions:

Accounting Break-even

Accounting Break-even is the point at which a company's revenues exactly cover its expenses, excluding financing costs and taxes.

Contribution Margin

The selling price per unit minus the variable cost per unit, used to determine how sales affect net income.

Sales Projections

Estimates of the future sales revenue of a company, which are often based on historical sales data, market trends, and other relevant factors.

NPV

Net Present Value, a calculation used to determine the value of an investment by discounting future cash flows to their present value.