________ Is a Computer Application That Enables a Firm to Combine

question 21

Multiple Choice

________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single, integrated software program that uses a single database.

• A) Materials requirement planning (MRP)
• B) PERT analysis
• C) Manufacturing resource planning (MRP II)
• D) Enterprise resource planning (ERP)

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Definitions:

Variable Costing

An accounting method in which variable costs are charged to cost units and fixed costs are treated as period costs and directly charged to the profit and loss account.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and tax.

Variable Costing

A method of accounting that encompasses just the variable costs associated with manufacturing—such as direct materials, direct labor, and variable manufacturing overhead—as part of the product costs.

Unit Product Cost

An assessment of the total expense incurred to produce a single unit, incorporating direct costs like labor and materials, as well as indirect costs.