Daniel Trumpe Has Computed the EOQ for a Product He

question 40

Multiple Choice

Daniel Trumpe has computed the EOQ for a product he sells to be 400 units.However,due to recent events he has a cash flow problem.Therefore,he orders only 100 units each time he places an order.Which of the following is true for this situation?

• A)Annual ordering cost will be lower than annual holding cost.
• B)Annual ordering cost will be higher than annual holding cost.
• C)Annual ordering cost will equal annual holding cost.
• D)Annual ordering cost will be unaffected by the order policy change.
• E)Nothing can be determined without more information.

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Definitions:

Affect Security

Refers to the impact that various factors can have on the security of systems, such as changes in software configurations or user permissions that could weaken defenses.

Device Manager

A Windows operating system feature that allows users to view and control the hardware attached to the computer.

Installed Devices

Hardware components that have been set up and configured to work with a computer system or network.

User Account Control

A security component in Windows operating systems that helps prevent unauthorized changes to the system by prompting for permission.