D6

Question 1

what does a master production indicates in material planning systems?

Answer 1

it indicates the quantities and timing of each part to be produced. This can result in number of advantages ranging from reduced costs to better planning

Question 2

What are the benefits of TOC?

Answer 2

1. improves throughput in an organization’s processes. 2. improve short-term profitability by focusing on production constraints and plausible short-term product-mix adjustments.

Question 3

Does TOC focus on long-term costing and profitability

Answer 3

no

Question 4

theoretical capacity

Answer 4

when calculating overhead allocations would mean that a large-denominator activity level would be used, resulting in a lower overhead allocation to individual units of product, distorting allocated costs, and provide management with costs too low.

Question 5

Practical capacity

Answer 5

represents the highest level of capacity that can be achieved, while allowing for unavoidable losses of productive time.