Which of the Following Statements About the Basic EOQ Model

question 209

Multiple Choice

Which of the following statements about the basic EOQ model is TRUE?

• A) If the ordering cost were to double, the EOQ would rise.
• B) If annual demand were to double, the EOQ would increase.
• C) If the carrying cost were to increase, the EOQ would fall.
• D) If annual demand were to double, the number of orders per year would increase.
• E) All of these statements are true.

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Definitions:

Sole Survivor

The only remaining person after an event that causes death or disappearance to all others involved, often used in the context of accidents or disasters.

Best Evidence Rule

The legal rule that holds that the courts generally accept into evidence only the original of a writing, not a copy.

Photocopy

A reproduction of a document or image created by a machine that uses light to produce an exact copy on paper.

Oral Statements

Spoken words or verbal expressions used in communication, lacking a written or tangible form, which may have legal significance in contracts or testimony.