Which of the Following Statements Concerning the Outcome of the Material

question 55

Multiple Choice

Which of the following statements concerning the outcome of the material planning process are NOT TRUE?

• A)The outcome can be multiple procurement proposals.
• B)The outcome is always a single procurement proposal.
• C)The outcome triggers the sales and operations planning step.
• D)The outcome triggers the forecasting planning step.
• E)The outcome can trigger either the production or the procurement process.

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Definitions:

Price-Making Ability

The capacity of a firm or entity to influence the price of goods or services in the market rather than accepting the market price as given.

Marginal Cost

The outlay required to produce an additional unit of a product or service.

Profit-Maximizing Level

The point at which a firm achieves the highest possible profit, typically where marginal costs equal marginal revenue.

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service.