What Is the Key Difference Between the MRP and JIT

question 8

Multiple Choice

What is the key difference between the MRP and JIT inventory management approaches?

• A)Only JIT reduces costs and improves efficiency.
• B)MRP is especially useful for products such as fashion apparel.
• C)JIT is more effectively used with products that have predictable patterns of demand.
• D)MRP schedules production to meet estimated sales needs;JIT schedules production to meet customer demands.

Differentiate between various types of costs and their implications on financial statements.

Understand the contribution approach to income statements and its importance in managerial decision-making.

Assess the effect of activity level changes on total costs, net income, and cost per unit.

Estimate expected costs based on historical data using linear cost behavior assumptions.

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Definitions:

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