Which of the Following Industry Types Will Not Benefit Greatly

question 57

Multiple Choice

Which of the following industry types will not benefit greatly from the application of MRP?

• A)Fabricate-to-order
• B)Assemble-to-stock
• C)Assemble-to-order
• D)Manufacture-to-order
• E)None of these

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Definitions:

Standard Wage Rate

The predetermined rate of pay for a specific task or job, often used in manufacturing to set baseline labor costs.

Total Material Variance

The difference between the actual material costs incurred and the expected (standard) costs, reflecting efficiency in material usage.

Direct Material Standards

The predetermined cost and quantity of raw materials that should be used in the production of a single unit of product under normal operating conditions.

Actual Production

The real quantity of goods or services produced over a specified period, as opposed to planned or expected production levels.