Which of the Following Is Not an Assumption of the Economic

question 4

Multiple Choice

Which of the following is not an assumption of the economic order quantity model?

• A)Demand is known,constant,and independent.
• B)Lead time is known and constant.
• C)Quantity discounts are not possible.
• D)Production and use can occur simultaneously.
• E)The only variable costs are setup cost and holding (or carrying)cost.

Analyze the effects of inflation, deflation, and stagflation on the economic environment.

Differentiate between various types of unemployment and their causes.

Calculate changes in price levels and understand their impact on the economy.

Recognize the components of the labor force and the calculation of unemployment rates.

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Definitions:

Prematurely Recognize

Recording revenue or expenses in financial statements before the criteria for such recognition are fully met.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used internationally.

U.S.GAAP

United States Generally Accepted Accounting Principles, which is a framework of accounting standards, principles, and procedures used in the U.S.

Fair Value

An estimate of the market value of an asset or liability based on current market prices or valuations of similar transactions.