With Regard to Capacity Planning,the Difference Between an Integrated MRP-JIT

question 18

Multiple Choice

With regard to capacity planning,the difference between an integrated MRP-JIT system and an only-MRP system is that ______.

• A)the MRP system uses finite capacity planning; the integrated MRP-JIT system uses infinite capacity planning
• B)the MRP system uses infinite capacity planning; the integrated MRP-JIT system uses finite capacity planning
• C)there is no difference; both systems use finite capacity planning
• D)there is no difference; both systems use infinite capacity planning

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product costs, excluding fixed costs.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and a portion of all overhead costs.

Variable Costing

A system in accounting that considers solely the changing costs associated with production (direct materials, direct labor, and variable manufacturing overhead) in the calculation of product prices.

Net Operating Income

Net Operating Income, often abbreviated as NOI, is a financial metric that calculates a company’s profit after subtracting operating expenses excluding taxes and interest.