Which of the Following Is True Regarding Sales and Operations

question 35

Multiple Choice

Which of the following is true regarding sales and operations planning (S&OP) ?

• A) Follows a time horizon of more than 24 months, with updating of the plan quarterly.
• B) Changes in facilities are the first step in the S&OP process.
• C) Management can use S&OP to lower inventories or increase flexibility.
• D) All of the above.

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Definitions:

Accounts Receivable

Funds that customers owe to a business for products or services provided but for which payment has not yet been received.

Unearned Sales Revenues

A liability on a company's balance sheet that represents revenue received before the company has delivered goods or services.

Sales Revenues

Sales revenues refer to the income generated from the sale of goods or services by a company before any expenses are subtracted, indicating the primary source of business income.

Operating Expenses

Costs related to the day-to-day functions of a business, excluding cost of goods sold, but including items like rent, salaries, utilities, and depreciation.