Which of the Following Processes Commits Orders Against Available Capacity

question 136

Multiple Choice

Which of the following processes commits orders against available capacity as well as inventory?

• A) Available-to-promise
• B) Capable-to-promise
• C) Engineered-to-order
• D) Make-to-order

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Definitions:

Manufacturing Variances

Differences between the actual costs and standard (expected) costs incurred during production, which can be categorized into material, labor, and overhead variances.

Incremental Analysis

The process of identifying the financial data that changes under alternative courses of action, used for decision-making in business.

Financial Data

Numeric information related to the financial performance, position, and cash flows of a business.

Alternative Courses of Action

Different strategies or options considered by decision-makers to achieve a goal or solve a problem.