A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as ___________?
Correct answer: A. materials requirement planning
- A. materials requirement planning
- B. in-time production
- C. on-time production
- D. pull strategy of productionHire An Accountant
Explanation
Materials requirements planning is a push system because production and material purchases are scheduled from forecasted demand and planned requirements. A pull strategy responds to actual downstream demand rather than producing mainly for finished-goods inventory.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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