An Economic Variable That Is Measured Per Unit of Time,such

question 141

Multiple Choice

An economic variable that is measured per unit of time,such as spending per year,is known as a:

• A)stock variable.
• B)periodic variable.
• C)dummy variable.
• D)flow variable.
• E)controlled variable.

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Definitions:

Order Spacing

The practice of timing and spacing out orders to manage inventory levels and optimize supply chain efficiency.

Order Size

The quantity of goods a customer requests in a single purchase transaction.

Economic Order Quantity

A deterministic inventory model that determines the optimal order quantity minimizing total inventory costs, including holding and ordering costs.

Total Annual Cost

The total amount spent on specific activities or operations, including both fixed and variable costs, over the course of a year.