Which of the Following Is Not a Direct Input to Capacity

question 122

Multiple Choice

Which of the following is not a direct input to capacity requirements planning?

• A) planned shop orders
• B) open shop orders
• C) setup time and run time per unit for shop orders
• D) current inventory levels
• E) quantity for shop orders

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Definitions:

Warranty Period

The length of time during which a manufacturer promises to repair or replace defective products at no charge to the customer.

Estimated Warranty Expense

Estimated Warranty Expense is an anticipated cost a company expects to incur related to its product warranties, predicting repairs or replacements it will provide for products sold within a given period.

Average Cost

A method of inventory valuation which calculates the cost of goods sold and ending inventory based on the average cost of all similar items.

Journal Entries

These are records of all the financial transactions of a business, recorded in the chronological order in which they occur.