The Parts Explosion Results in the Following Outputs

question 17

Multiple Choice

The parts explosion results in the following outputs:

• A) purchase orders and S&OP (aggregate planning).
• B) purchase orders and bill of materials.
• C) purchase orders and shop orders.
• D) shop orders and inventory orders.

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Definitions:

Income Summary

An account in the ledger that is used during the closing process to collect all the temporary account balances before transferring the net result to the capital account.

Purchases

The acquisition of goods or services by a company for use in its operations or for resale.

Income Summary Account

The income summary account is used during the closing process to compile all income and expense transactions, facilitating the determination of a business's net income.

Capital Account

An account on the balance sheet that reflects the net worth and equity of an individual or business.