Which One of the Following Most Closely Describes Net Requirements

question 16

Multiple Choice

Which one of the following most closely describes net requirements for the current period?

• A)gross requirements for current period− projected on-hand inventory for current period
• B)gross requirements for current period − planned receipts for previous period
• C)gross requirements for current period − planned order releases for previous period + projected on-hand inventory for previous period
• D)gross requirements for current period − planned order releases for previous period
• E)gross requirements for current period − projected on-hand inventory for current period + planned order releases for current period

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Definitions:

Discount Period

The time frame between the issuance of a bill or an invoice and its due date, often associated with a discount offered for early payment.

FOB Shipping Point

A shipping term indicating that the buyer takes responsibility for the goods and covers shipping costs from the point of departure.

Debit Memo

A document issued by a buyer to a seller to correct errors, reduce amounts owed, or return funds in the case of an overpayment.

Perpetual Inventory System

An inventory management system where updates are made continuously as transactions occur, keeping a real-time track of inventory levels.