Forecasts in a Company Using a Distribution Requirements Planning System

question 58

Multiple Choice

Forecasts in a company using a distribution requirements planning system are typically based on:

• A)historical data from upstream supply partners.
• B)historical data from downstream supply partners.
• C)upstream supply partners' requirements.
• D)downstream supply partners' requirements.

---

Definitions:

Capital Lease

A lease considered as a purchase of an asset, where the lessee records the leased asset as a capital asset on the balance sheet.

Annual Expense

The total costs incurred by a business or individual in one fiscal year, encompassing operational costs, interest payments, and other expenditures.

Depreciate

The reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Lease Term

The fixed, non-cancellable period during which a lessee has the right to use an asset, plus any options to extend or terminate the lease if reasonably certain to be exercised.