Planning Systems, Has Forecast the Following Unit Sales and Production

question 76

Multiple Choice

Planning Systems, has forecast the following unit sales and production for the next year, by quarter: A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories.
How much material A must be purchased in quarter 2?

• A) 138
• B) 142
• C) 156
• D) 162

Understand the effects of priming and significant others on motivation and task engagement.

Grasp the concept of unconscious goals and their influence on behavior.

Appreciate the importance of self-regulation in achieving long-term goals and its predictors.

Understand the concept of ironic processing and strategies to minimize its effects.

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Definitions:

Sales On Account

Transactions where goods or services are sold to a customer with an agreement that payment will be made at a later date.

Cost Of Goods Sold

The total cost directly associated with the production of the goods sold by a company.

Times Interest Earned

A ratio that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.