Which of the Following Statements Is Correct

question 7

Multiple Choice

Which of the following statements is correct?

• A) you must know the ordering cost to use the EOQ concept
• B) quantity discounts will not change the total inventory costs of the item
• C) inventory levels can be lowered by raising the order quantity
• D) if stock is not received all at once into inventory then EOQ formula can be modified and used
• E) none of the above is correct

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Definitions:

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically associated with government bonds.