In Distribution Requirements Planning the MRP Records Do Not Use

question 24

Multiple Choice

In distribution requirements planning the MRP records do not use the term gross requirements; instead the amount is shown as:

• A)net requirements.
• B)total requirements.
• C)distributed requirements.
• D)forecasted demand.

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Definitions:

Break-even

The point at which total costs equal total revenue, meaning there is no profit or loss.

Sales Dollars

The total revenue generated from the sale of goods or services, often measured within a specific period.

Total Period Cost

Refers to the sum of all costs associated with production and operations for a specific period.

Variable Costing

An accounting method that assigns only variable production costs to products - those costs that fluctuate with the level of production, such as raw materials and labor.