What Is the Formula for Calculating the ATP Quantity in the Action

question 35

Multiple Choice

What is the formula for calculating the ATP quantity in the action bucket?

• A) MPS shipment  customer orders before next replenishment
• B) beginning inventory + MPS shipment  (the greater of this period's forecast or the actual customer orders promised for delivery this period)
• C) beginning inventory + MPS shipment  forecasted demand
• D) beginning inventory + MPS shipment  customer orders before next replenishment
• E) beginning inventory + MPS shipment  customer orders this period

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Definitions:

Adjusting Entry

An accounting entry made into a journal at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid.

Nominal Interest Rate

The stated interest rate of an investment or loan without accounting for inflation or compounding interest effects.

Nominal Interest Rate

The stated interest rate on a loan or financial instrument, not accounting for inflation or other factors that affect the real interest rate.