In Order to Schedule Deliveries, Minimotors's Suppliers Need Detailed Information

question 143

Multiple Choice

In order to schedule deliveries, Minimotors's suppliers need detailed information about when parts are needed. Minimotors will purchase a computer application that will link its operation to sales forecasts to make sure needed parts and supplies are available at the right time to meet customer demands. This planning system is known as

• A) materials requirement planning (MRP).
• B) program evaluation and review technique (PERT).
• C) minimum daily requirements scheduling (MDRS).
• D) sales-based requirements forecasting (SBRF).

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Definitions:

Liability Account

An accounting record that represents an obligation to pay money to another party, reflects a company's debts or financial obligations.

Performance Obligation

A commitment in a contract to provide a distinct good or service to a customer, which is a key concept in recognizing revenue.

Revenue Recognition

Revenue recognition is an accounting principle determining when revenue is earned and can be recorded in the financial statements.