Planning Systems, Inc

question 146

Multiple Choice

Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: 1^st 2^nd 3^rd 4^th
Production 150 160 140 100
Sales 120 140 150 120
The firm has beginning inventories as follows:
Finished goods 50 units
Direct material A 100
Direct material B 100
A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories.
What is the ending finished goods inventory for quarter 2?

• A)50
• B)70
• C)80
• D)100

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Definitions:

Metacontrast Principle

A phenomenon in social identity and group behavior, where contrast between in-group and out-group members is maximized in the perceivers' mind.

Extended Contact Effect

The reduction of prejudice through indirect relationships, wherein knowing a member of an in-group has a friends in an out-group can lead to more positive attitudes towards that out-group.

Ingroup Favouritism

Behaviour that favours one’s own group over other groups.

Generalisation

The act or process of forming conclusions based on broad patterns, observations, or experiences that apply beyond specific instances.