Which Statement Concerning MRP II Is False

question 17

Multiple Choice

Which statement concerning MRP II is false?

• A) It is basically a computerized system.
• B) It can handle complex planning and scheduling quickly.
• C) It involves other functional areas in the production planning process.
• D) It involves capacity planning.
• E) It produces a production plan which includes all resources required.

---

Definitions:

Average Operating Assets

The average value of the assets used in the course of business operations over a specific period, utilized to generate revenue.

Contribution Margin

Contribution margin is the amount by which the sale of a product exceeds its variable costs, indicating the portion of sales revenue available to cover fixed costs and generate profit.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the return (net profit) divided by the cost of the investment.

Flexible Budget

A budget that modifies in response to fluctuations in activity levels or volume within an enterprise.