Successful Implementation of an Effective MRP System Depends Upon: (1)the

question 30

Multiple Choice

Successful implementation of an effective MRP system depends upon: (1) the recognition of the difference between independent and dependent demand, and (2)

• A)computers.
• B)development of the EOQ model.
• C)inventory control systems.
• D)blanket purchase orders.
• E)the Internet.

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Definitions:

Operating Income

The profit realized from a business's operations after subtracting operating expenses from revenues.

Activity Level

Refers to the volume of production or the quantity of operations that influences costs in manufacturing or service delivery.

Net Operating Income

Profit generated from a company's core business operations, excluding deductions of interest and taxes.

Flexible Budget

A flexible budget adjusts based on changes in the volume of activity, allowing for a more accurate comparison of actual to budgeted performance.