Because MRP and DRP Systems Are Primarily External, an Additional

question 10

True/False

Because MRP and DRP systems are primarily external, an additional electronic linkage to suppliers and customers is not needed.

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Definitions:

August

The eighth month of the year in the Gregorian calendar.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) cost allocated to production, based on the standard variable overhead rate.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, used to measure the efficiency and cost management in labor use.