In MRP Processing the Difference Between a Planned-Order Release and the Planned-Order

question 24

Multiple Choice

In MRP processing the difference between a planned-order release and the planned-order receipt is:

• A)level of safety stock.
• B)scheduled receipts of open orders.
• C)timing as per the lead time.
• D)a one is a forecast and the other is actual.
• E)the level of net requirements.

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Definitions:

Absorption Costing

An accounting method that assigns all manufacturing costs, including both fixed and variable, to products, fully capturing the cost of production.

Fixed Manufacturing Overhead

Regular, unchanged costs incurred during the manufacturing process, regardless of the level of output.

Variable Costing

A costing method that only includes variable production costs in product costs, excluding fixed manufacturing overhead.

Net Operating Income

The profit generated from a company's day-to-day operations, excluding investment and financing transactions.