In Relation to the Economic Order Quantity Model

question 8

Multiple Choice

In relation to the economic order quantity model:

• A) the higher the price paid for inventory, the less frequently it should be ordered.
• B) the higher the price paid for inventory, the more frequently it should be ordered.
• C) the price paid for inventory does not directly affect the frequency of inventory ordering.
• D) none of the above is true.

---

Definitions:

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume, such as raw materials and labor.

Total Revenue

The total income generated from the sale of goods or services by a company before any expenses are subtracted.

Marital Rape

The act of sexually assaulting a spouse without their consent, recognized as a crime in many jurisdictions.

Unwanted Sexual Behaviors

Actions of a sexual nature imposed on someone without their free and informed consent.