What is the explosion of the MPS and what are the outputs?
What will be an ideal response?
MRP translates, or explodes, the MPS and other sources of demand into the requirements needed for all of the subassemblies, components, and raw materials the firm needs to produce parent items. This process generates the material requirements plan for each component item. An item's gross requirements are derived from three sources: 1. The MPS for immediate parents that are end items; 2. The planned order releases (not the gross requirements, scheduled receipts, or planned receipts) for immediate parents below the MPS level; 3. Any other requirements not originating in the MPS, such as the demand for replacement parts.
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Process costing is used when
a. the production process is continuous. b. production is aimed at filling a specific customer order. c. dissimilar products are involved. d. costs are to be assigned to specific jobs.
Refer to Camey Construction. How should Camey report Construction in Progress and Billings on Construction in Progress at the end of year 1 on the balance sheet assuming the use of the percentage-of-completion method?
A) asset of $0 B) liability of $120,000 C) asset of $1,500,000 D) liability of $2,000,000