Which One of the Following Most Closely Describes Net Requirements

question 16

Multiple Choice

Which one of the following most closely describes net requirements for the current period?

• A)gross requirements for current period− projected on-hand inventory for current period
• B)gross requirements for current period − planned receipts for previous period
• C)gross requirements for current period − planned order releases for previous period + projected on-hand inventory for previous period
• D)gross requirements for current period − planned order releases for previous period
• E)gross requirements for current period − projected on-hand inventory for current period + planned order releases for current period

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Sales

The activities involved in selling products or services, ultimately generating revenue for a business.

Decentralization

Assignment of decision-making rights to lower operating levels of an organization. Decreases cost of transferring specific knowledge needed to make decisions, but increases the cost of controlling behavior.