Rough Cut Capacity Plans Are Static Level Plans That Involve

question 51

True/False

Rough cut capacity plans are static level plans that involve looking forward in the long term to
predict the requirements for large structural parts of the operation.

---

Definitions:

Cost of Merchandise Sold

The direct costs tied to producing the goods that a company sells, thus a direct reflection of the cost of inventory sold.

Gross Profit

The difference between revenue and the cost of goods sold, excluding other operating expenses and taxes.

Income from Operations

The profit earned from a company's everyday business activities, excluding income from other sources and expenses like taxes and interest.

Operating Expenses

The costs associated with the day-to-day activities of running a business, not including the cost of goods sold.