Which of the Following Statements About the Basic EOQ Model

question 4

Multiple Choice

Which of the following statements about the basic EOQ model is false?

• A) If the setup cost were to decrease, the EOQ would fall.
• B) If annual demand were to double, the number of orders per year would increase.
• C) If the ordering cost were to increase, the EOQ would rise.
• D) If annual demand were to double, the EOQ would also double.
• E) All of the above statements are true.

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Definitions:

Consideration

The value (such as money, a service, or a promise) that is given by one party to another in exchange for performing or promising to perform a certain act.

Stereo Speakers

Audio devices designed to reproduce sound with a sense of spatial depth and positioning, creating a stereo effect by having multiple components that output various channels of audio.

Consideration

Consideration is a legal term that refers to something of value promised to another when making a contract, and it is a necessary element for the contract to be enforceable.

Gift Causa Mortis

A gift made by an individual who believes they are nearing death, which will be revoked if the donor survives.