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Commerce · Q352

Costing

Graduate and Post Graduate · Commerce · question 352

Q352

A push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as

A.
in-time production
B.
materials requirement planning
Answer
C.
on-time production
D.
pull strategy of production

Answer: Option B

Solution

Answer: Option B
Solution:
A push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as materials requirement planning. Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product.