The MPS Calls for 110 Units of Product A

question 98

Multiple Choice

The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 4 of Part B. There are 20 units of B available. The net requirements for B are

• A) 20
• B) 120
• C) 180
• D) 240
• E) 440

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Definitions:

Credits

Credits refer to the accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Customer Transaction

An operation between a business and its customer involving the sale or purchase of goods or services.

Invoices

Documents issued by a seller to a buyer that outline the products or services provided, quantities, prices, and terms of payment.

Credit Memos

Documents issued to a customer, indicating a reduction in the amount that the customer owes to the company.