Which of the Following Best Describes a Gross Material Requirements

question 105

Multiple Choice

Which of the following best describes a gross material requirements plan?

• A) a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started
• B) an intermediate range plan for the scheduling of families of products
• C) a chart illustrating whether capacity has been exceeded
• D) a table that corrects scheduled quantities for inventory on hand
• E) a schedule showing which products are to be manufactured and in what quantities

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Definitions:

Sales Price Variance

The difference between the actual sales revenues received and the expected revenues at standard selling prices.

Master Products

Core products that represent the primary focus or business of a company, often driving its strategic direction.

Standard Costing Systems

A cost accounting method that compares actual costs to standard costs to help managers control business costs.

Variances

Differences between planned or expected financial outcomes and the actual results observed.