Which of the Following Are NOT Assumptions on Which the Economic

question 25

Multiple Choice

Which of the following are NOT assumptions on which the economic order quantity (EOQ) is based?

• A) demand is relatively constant and known
• B) the item is produced continuously
• C) order preparation costs, inventory carrying costs and lead times are constant and known
• D) replacement occurs all at once
• E) all of the above are true assumptions

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Definitions:

Helpline Costs

Expenses incurred in operating a support service that provides assistance to users, typically over the phone or online.

Volume

In finance, it refers to the total number of shares or contracts traded for a specific security or market during a given period.

Calls

In finance, refers to an agreement that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

Step-Variable Cost

Costs that remain fixed over a specific range of production or activity, but jump to a higher level once a certain threshold is exceeded.