Which of the Following Is Not True for Action Notices

question 1

Multiple Choice

Which of the following is not true for action notices that are produced by MRP systems?

• A) An action notice is produced when a planned order needs to be released.
• B) An action notice is produced when due dates of orders need to be adjusted.
• C) An action notice is produced when the lead time is not sufficient for a planned order.
• D) An action notice is produced when inventory is moved to the manufacturing floor.
• E) They indicate actions that need to be taken by inventory planners.

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Definitions:

Creditors' Risk

The risk that debtors will fail to make payments on debts owed, affecting creditors' financial positions.

Nonpayment

The failure to fulfill a financial obligation, such as not paying bills, debts, or invoices when they are due.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not necessarily align with the calendar year.

Stockholder's Equity

The ownership interest of shareholders in the assets of a corporation, represented by their shares of the company's stock.