Which of the Following Is Not an Assumption Associated with the Basic

question 18

Multiple Choice

Which of the following is not an assumption associated with the basic economic order quantity (EOQ) model?

• A) no inventory in transit
• B) an infinite planning horizon
• C) stockouts are permitted
• D) a constant and known replenishment or lead time
• E) all are basic assumptions with the basic EOQ model

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Definitions:

Salaries Payable

An account recording the amount owed to employees for services rendered but not yet paid.

Weekly Salaries

Weekly salaries are fixed amounts paid to employees on a weekly basis as compensation for their work.

Salary Expense

The cost incurred by an employer for the payment of salaries to employees, considered an operating expense.

Salaries Payable

Liabilities representing the amounts owed to employees for work performed and not yet paid.