Which of the Following Is Not True for Planned Orders

question 9

Multiple Choice

Which of the following is not true for planned orders?

• A) They are necessary only for finished products.
• B) They result when there is not enough inventory to cover the gross requirements.
• C) The quantity is calculated using the lot-sizing rule.
• D) The lead time is required to determine when the order should be placed.
• E) The inventory records file is updated for the order.

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Definitions:

Regulation

The act of controlling, guiding, or managing activities through rules or laws created by governments or regulatory bodies to achieve specific outcomes.

Compound Financial Instrument

A financial instrument that has characteristics that are a combination of a financial asset, financial liability or equity instrument.

Convertible Notes

Debt instruments that can be converted into a specified number of shares of the issuing company at certain times during its life, usually at the discretion of the note holder.

Liability

A present obligation of the entity to transfer an economic resource as a result of past events.