MRP will be a preferred method over JIT when the

A) demand for inventory is fairly predictable.
B) demand for inventory is mostly unpredictable.
C) product has a short life cycle.
D) MRP is always a preferred method over JIT.

Answer: A) demand for inventory is fairly predictable.

Business

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When considering a principal residence as a tax shelter, remember that you can

A) purchase a house and deduct the mortgage interest. B) maintain and improve your home, as $500,000 of capital gains for couples and $250,000 of capital gains for single filers is exempt from taxation. C) take out a home equity loan to pay for other debts, such as auto financing. D) use all of these tax-saving strategies. E) only A and C.

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