Which of the Following Industry Types Will Not Benefit Greatly

question 12

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 the above

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Definitions:

Sales Volume

The total quantity of products or services sold by a company during a specific period of time.

Contribution Margin Ratio

The percentage of each sales dollar that contributes to covering fixed costs and generating profit.

Products

Goods or services that are created through a business process and offered in the market to satisfy the needs or wants of customers.

Predetermined Overhead Rate

This is a rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to products.