In MRP, the Gross Requirements of a Given Component Part

question 82

Multiple Choice

In MRP, the gross requirements of a given component part are calculated directly from

• A)net requirements + projected on-hand inventory.
• B)gross requirements of the immediate parent.
• C)planned order releases of the end item.
• D)net requirements of the end item.
• E)planned order releases of the immediate parent.

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Definitions:

Ending Inventory Costs

The total value of all the goods that a company has in stock at the end of an accounting period, before any adjustments or cost of goods sold calculations.

LIFO Periodic Inventory Method

An inventory valuation method where the last items purchased are the first items considered sold during a given period, calculated periodically.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated before any adjustments for cost of sales.

Perpetual Inventory System

A bookkeeping approach that instantly logs the sale or acquisition of stock using computerized point-of-sale systems and enterprise asset management programs.