The Bill of Material Contains Information Necessary to

question 70

Multiple Choice

The bill of material contains information necessary to

• A) place an order to replenish the item
• B) calculate quantities on hand and on order
• C) convert net requirements into higher level gross requirements
• D) convert gross requirements into net requirements
• E) convert (explode) net requirements at one level into gross requirements at the next level

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Definitions:

Factory Labor

Refers to the workforce involved in the operational processes within a manufacturing facility, often considered a direct cost in production.

Employer Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, which may include Social Security, Medicare, and unemployment taxes.

Gross Earnings

Total compensation earned by an employee.

Direct Labor Hour

A measure of labor input, which is the time spent by workers directly manufacturing a product.