What Data Are Added to Create an Extended MPS Record

question 49

Multiple Choice

What data are added to create an extended MPS record that allows the firm to compute available-to-promise units?

• A) time period (e.g. weeks)
• B) forecast
• C) customer orders
• D) projected available
• E) MPS

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Definitions:

Average Total Cost

The total cost of production (fixed and variable costs) divided by the total quantity of output produced.

Marginal Cost

The additional cost incurred in the production of one extra unit of a good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; these costs decline as production increases.

Marginal Cost

The financial cost of producing an extra unit of a good or service.