Which of the Following Statements Is FALSE About MRP II

question 59

Multiple Choice

Which of the following statements is FALSE about MRP II systems?

• A)They create a detailed production schedule to coordinate the arrival of components with resources such as labor and machine availability.
• B)They are an extension of a closed loop MRP system.
• C)They add value at every phase,beginning with the purchase of materials,through the manufacturing facility to the shipping dock,where the product is packaged and send to end customer.
• D)They lack tools to track employee attendance,labor contribution,and productivity.

---

Definitions:

Profit-Maximizing

A strategy or process used by firms to determine the output level and pricing that yields the highest possible profit.

Negative Externality

An adverse effect on a third party not directly involved in an economic transaction, often leading to market failure if not properly addressed.

Marginal Social Cost

The additional cost to society as a whole of producing one more unit of a good or service, including both private and external costs.

Marginal Damage Cost

The additional cost associated with producing one more unit of a good or service, considering the negative externalities.