Explain why, in a dependent demand environment, MRP does a better job of estimating the need to replenish inventory items than does the reorder point system
What will be an ideal response?
MRP works better for dependent-demand environments because statistical forecasting for components with lumpy demand results in large forecast errors. It also provides managers with information useful for planning capacities and estimating financial requirements, and it automatically updates the demand and inventory-replenishment schedules of components when the production schedule of parent items changes.
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All of the following statements are true except:
a. The criteria to determine whether a lease contract should be considered a capital lease are applied in a more rigid way under U.S. GAAP than IFRS. b. The criteria to determine whether a lease contract should be considered a capital lease are applied in a more rigid way under IFRS than U.S. GAAP. c. The lease criteria under IFRS are to be used as guidelines rather than rules. d. IFRS requires more accounting judgment than U.S. GAAP in the determination of whether a lease is classified as an operating lease or a capital lease.
Which is the highest level in the ethical maturity model?
a. Ethical leadership b. Ethical courage c. Personal ethical understanding d. Application of ethics to business situations
Which of the following is not considered one of the basic elements that serve as the foundation by which leaders develop their teams to achieve maximum performance?
a. avoidance of out-group relationships b. shared values, goals, and vision c. dealing with the paradox of interdependence vs. individuality d. management of virtual teams
Piper Company issued ten-year, 8 percent bonds payable in 20x5 at a premium. During 20x5, the company's accountant failed to amortize any of the bond premium. The omission of the premium amortization will
A) cause net income for 20x5 to be overstated. B) not affect net income reported for 20x5. C) cause net income for 20x5 to be understated. D) cause retained earnings at the end of 20x5 to be overstated.