If a Manufacturer Had No Inventory of Any Kind but Had

question 46

Multiple Choice

If a manufacturer had no inventory of any kind but had orders for 10 finished units of their sole product, their buyer would know what parts to order if they were supplied with a:

• A)backward schedule.
• B)bill of material.
• C)rough-cut capacity plan.
• D)planning horizon order sheet.

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Definitions:

Budgeted Sales Data

Projections or estimates of the sales revenue expected to be achieved in a future period.

Cash Receipts

The collection of money, typically in the form of cash, checks, or electronic transfers, for goods or services received.

Direct Materials Budget

A financial plan that estimates the quantity and cost of direct materials required for production during a specific period.

Raw Materials

Any materials that go into the final product.