Since Computers Have Been Invented, Materials Requirements Planning (MRP) Is

question 25

True/False

Since computers have been invented, materials requirements planning (MRP) is an outdated method of controlling inventory.

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Definitions:

Explicit Costs

These are the direct, clear expenses related to business operations, such as salaries, utilities, and rent, that are easily quantifiable.

Accounting Profit

The difference between the total revenue and explicit costs of a firm, not accounting for implicit costs.

Economic Profit

The variance between a company's overall incomes and its combined explicit and implicit expenses.

Implicit Costs

The opportunity costs of using resources owned by the firm for its operations instead of renting, selling, or utilizing them in other ways.