Using the Cut-And-Try Method for Aggregate Operations Planning We Can

question 30

Multiple Choice

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If the beginning inventory is 100 units, the demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement?

• A)1,200
• B)1,300
• C)1,340
• D)1,500
• E)1,540

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Definitions:

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting principles, standards, and procedures that companies use to compile their financial statements.

Routine Maintenance

Regular, scheduled work done on equipment, machines, or systems to prevent unexpected breakdowns and to keep them operating efficiently.

Capitalized

The process of recording a cost or expense on the balance sheet for the purposes of spreading out the expense over the useful life of an asset, rather than charging it to expense all at once.

Interest Cost

The total cost of borrowing funds, typically expressed as a percentage of the borrowed amount, over the period of the loan.