In Aggregate Planning, Which One of the Following Is Not

question 12

Multiple Choice

In aggregate planning, which one of the following is not a basic option for altering demand?

• A) promotion
• B) subcontracting
• C) back ordering
• D) pricing
• E) level scheduling

---

Definitions:

Equivalent Units

A concept used in cost accounting to assign costs to partially completed goods, expressed in terms of fully completed units.

Conversion Costs

The sum of direct labor and manufacturing overhead expenses involved in turning raw materials into completed goods.

Direct Method

A cash flow statement preparation method that lists major categories of gross cash receipts and payments, directly showing sources and uses of cash.

Step-Down Method

An allocation method used in cost accounting to allocate service department costs to production departments in a sequential manner based on certain criteria.