A Material Requirements Planning (MRP)system Serves as Both an Inventory

question 75

True/False

A material requirements planning (MRP)system serves as both an inventory control system and as a production scheduling system.

---

Definitions:

Depreciation Expense

Segmenting the cost related to a physical asset through its active life.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, representing how much of the asset's value has been used up.

Balances

The figures that represent the difference between the sum of debits and credits in an account.

Expense Recognition

The accounting principle that expenses are recorded and reported in the same period as the revenues they help to generate, ensuring accurate financial statements.