Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A) The "slushy" portion of the MPS comes later than the "liquid" portion of the MPS.
• B) The planning time fence occurs before the demand time fence.
• C) The "frozen" portion of the MPS occurs between the planning time fence and the demand time fence.
• D) The master scheduler has more authority during the "frozen" portion of the MPS than during the "slushy" portion of the MPS.
• E) The "liquid" portion of the MPS occurs after the demand time fence.

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Definitions:

CCA Pool

Refers to the Canadian Capital Cost Allowance pool, a system used for tax depreciation of property or equipment in Canada, grouping assets with similar depreciation rates.

Equipment Sale

Equipment Sale involves the process of selling tools, machinery, and other tangible assets used in operating a business.

Net Working Capital

This reflects the variance between what a business owns in the short term versus what it owes, highlighting its financial robustness and operational productivity.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company's balance sheet.