Which of the Following Statements on MRP Is TRUE

Multiple Choice

Which of the following statements on MRP is TRUE?

A) MRP is an inventory control system that derives the gross requirements of the end items from purchase commitments with vendors.
B) The payoffs from MRP tend to be greater when there are more BOM levels and larger lot sizes.
C) The fixed order quantity (FOQ) eliminates remnants.
D) When MRP systems are enhanced to include financial reporting they are called basic MRP systems, or "little mrp."