In a Demand-Pull System

question 161

Multiple Choice

In a demand-pull system

• A)production is triggered by a forecast.
• B)production is triggered by a customer order.
• C)production is triggered by a vendor shipment.
• D)production is triggered by an economic reorder point.

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Definitions:

Financial Statements

The formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Plant Asset

Long-term tangible assets used in the operation of a business and not intended for resale.

Current Liabilities

Liabilities that will be due within a short time (usually one year or less) and that are to be paid out of current assets.

Current Assets

Assets expected to be converted into cash, sold, or consumed within one year or during the business's operating cycle, whichever is longer.