In MRP (Materials Requirements Planning) the Bill of Materials Is

question 34

Multiple Choice

In MRP (Materials Requirements Planning) the Bill of Materials is:

• A) A list of required safety stock items.
• B) The difference between planned receipts and current stocks.
• C) The sum of stock-on-hand and work-in-progress.
• D) The required output from a process over time.
• E) The product structure showing where common parts are used.

---

Definitions:

Normal Balance

The side (debit or credit) of an account that is usually increased, reflecting its nature as an asset, liability, equity, revenue, or expense.

Equity

The ownership interest held by shareholders in a corporation, calculated as total assets minus total liabilities.

Liability

A financial obligation or debt that a company owes to others, which must be settled over time through the transfer of assets or services.

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.