The ________ Is an Inventory Management Technique That Compares Production

question 3

Multiple Choice

The ________ is an inventory management technique that compares production needs to available inventory balances and determines when orders should be placed for various material inputs.

• A) ABC system
• B) EOQ model
• C) MRP system
• D) JIT system

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Definitions:

Break-Even Point

The point at which total revenues equal total costs, meaning no profit or loss is incurred.

Fixed Costs

Expenses that do not change in proportion with the activity of a business, such as rent, salaries, and insurance.

Units

A measure of quantity, whether referring to the products manufactured, services provided, or another quantifiable resource.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.