MRP Will Be a Preferred Method Over JIT When the

question 12

Multiple Choice

MRP will be a preferred method over JIT when the

• A)demand for inventory is fairly predictable.
• B)demand for inventory is mostly unpredictable.
• C)product has a short life cycle.
• D)None of the above are correct.

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Definitions:

Patent

A legal right granted by a government authority to an inventor or their assignee, giving them exclusive rights to produce, use, or sell an invention for a certain period of time.

Consideration Paid

The total amount of money or its equivalent paid or delivered by one party to another in exchange for goods, services, or assets.

Voting Common Stock

A type of equity security that grants the holder the right to vote on corporate matters and receive dividends.

Treasury Stock Approach

A method of accounting for repurchased shares of a company's own stock, treating them as treasury stock and reducing the company's equity.