The Three Main Inputs to an MRP System Are the Bill-Of-Materials

question 71

True/False

The three main inputs to an MRP system are the bill-of-materials, the master schedule, and the inventory records file.

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Definitions:

Inventory

An asset that represents the total amount of goods and or materials a company holds for sale or production in the normal course of business.

Equivalent Units

A concept in process costing that converts partially completed units into a number of equivalent full units.

Direct Method

An approach used in cost accounting or cost allocation in which costs are directly assigned to cost objects, such as departments or products, without any allocation of indirect costs.

Service Department

A division within a company that supports other departments by providing internal services or assistance.