Briefly describe an MRP explosion, and identify three sources gross requirements are derived from
MRP explosion is the process of translating MRP inputs into a plan that specifies the required quantities and timing of all subassemblies, components, and raw materials required to produce parent items. An MRP record is generated for every part that a company works with.
The gross requirements for an item are derived from three sources:
· The MS for immediate parents that are end items
· The planned order releases for parents that are below the MS level
· Any other requirements, typically for spare parts
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Many expenses of the entire business may be allocated to departments on a percentage basis
a. True b. False Indicate whether the statement is true or false
[The following information applies to the questions displayed below.] Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During this time, the company produced 60,000 units and sold 40,000 units at a sales price of $600 per unit. Cost information for this year is shown in the following table:Production costs Direct materials$90per unitDirect labor$75per unitVariable overhead$4per unitFixed overhead$420,000in totalNon-production costs Variable selling and administrative$80,000in totalFixed selling and administrative$520,000in totalGiven the Galaxy Inc. data, what is net income using variable costing?
A. $17,400,000 B. $16,800,000 C. $16,220,000 D. $11,275,000 E. $16,360,000
"Multiple buying influence" means that several people rather than top management share in making a purchase decision.
Answer the following statement true (T) or false (F)
If stocks earn an average rate of return of 12 %, their value doubles every
A) 4 years. B) 6 years. C) 8 years. D) 12 years.