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Which Type of MRP System Is Used as an Information

question 34

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Which type of MRP system is used as an information system to plan and control inventories and capacities?


Definitions:

Fixed Manufacturing Cost

Costs that do not change with the level of production, such as salaries of permanent staff and rent for factory space.

Production Volume

The total quantity of products manufactured during a specific period.

Fixed Component

A cost or value that remains unchanged regardless of the level of output or activity, such as rent or salaried wages.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with changes in activity level but not in the same proportion.

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