Which of the Following Statements Concerning MRP-Based Planning Are TRUE

question 107

Multiple Choice

Which of the following statements concerning MRP-based planning are TRUE?

• A)Planning is based on historical data.
• B)Planning is based on exploding the BOM.
• C)Dependent demand is derived from independent demand.
• D)It is used for low-value materials.
• E)Planning is based on calculating a reorder point.

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Definitions:

Completion

The state of being finished or brought to the end, often referring to projects, construction, or specific tasks.

Cost Object

Any item for which a separate measurement of costs is desired, such as products, services, projects, or departments.

Process Costing

An accounting methodology used for homogeneous products, calculating the cost of each process or stage of production or manufacture.

Finished Goods Inventory

Finished goods inventory comprises products that have completed the manufacturing process but have not yet been sold to customers.