Which of the Following Is Not an Assumption for the Basic

question 109

Multiple Choice

Which of the following is not an assumption for the basic EOQ model?

• A)Only an integer number of orders can be made each year.
• B)Quantity discounts are not possible.
• C)Inventory receipt is instantaneous (all at once).
• D)With orders placed at the correct time,there will be no shortages.
• E)Demand is known.

---

Definitions:

Investment

Allocation of capital or resources to assets with the expectation of generating profit or income.

Required Rate

The minimum acceptable return on an investment deemed necessary by an investor or business.

Investment Project

An undertaking that involves allocating resources like capital and labor to generate financial returns or achieve strategic goals.

Payback Method

A capital budgeting technique that estimates the time required to recoup the initial investment in a project.