Using the BOM, If 2 Units of a Are Needed

question 22

Multiple Choice

Using the BOM, if 2 units of A are needed, how many used of K will be required? Assume that there is no on-hand inventory of any items.

• A)16
• B)34
• C)52
• D)104

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Definitions:

Net Working Capital

Net working capital is the difference between a company's current assets and current liabilities, indicating short-term financial health and the ability to cover its short-term obligations.

Factoring Receivable

The process of selling accounts receivable to a third party at a discount to quickly generate cash.

Book Value

Book Value is the value of an asset according to its balance sheet account balance, calculated by subtracting liabilities from assets.

Inventory

The basic substances, products under manufacturing, and completed items that form part of a company's assets, which are available or will soon be available for purchase.