The Correct Sequence of Elements Leading to an "Available to Promise

question 90

Multiple Choice

The correct sequence of elements leading to an "available to promise" (ATP) is

• A)item is not committed to another customer, item is on shelf, determine pricing, check customer credit limit
• B)item is on shelf, determine pricing, item is not committed to another customer, check customer credit limit
• C)item is on shelf, item is not committed to another customer, check customer credit limit, determine pricing
• D)item is on shelf, item is not committed to another customer, determine pricing, check customer credit limit

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Definitions:

Retained Earnings

The portion of net income left over after dividends have been distributed to shareholders, reinvested into the company.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Operating Cycle

The average period of time between the purchase of inventory and the receipt of cash from accounts receivable, representing the length of time a company's capital is tied up.

Inventory

Consists of the goods and materials a business holds for the purpose of resale or production.