Which of the Following Is Not a Correctly Stated Step

question 68

Multiple Choice

Which of the following is not a correctly stated step of the CPOPF method?

• A) Determine the appropriate planning factors using historical data.
• B) Multiply the MPS quantities by the appropriate planning factor.
• C) Sum capacity requirements for each resource by time period.
• D) Allocate capacity requirements to group work centers based on historical percentages.
• E) Evaluate the workload at each resource to validate MPS feasibility.

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Definitions:

Absorption Costing

A method of inventory costing in which all costs of production (both fixed and variable) are treated as product costs.

Gross Margin

Gross margin is the difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage. It measures how much a company earns taking into consideration the costs that it incurs for producing its products or services.

Variable Costing

An accounting method that includes only variable costs—costs that change with production levels—in the calculation of cost of goods sold and excludes fixed costs.

Net Operating Income

The total earnings from a company's operations after deducting operating expenses but before interest and taxes.