To Find the Average of the Total Cost of Orders

question 3

Multiple Choice

To find the average of the total cost of orders from Rex Technologies, what Excel formula should be used in A12?

• A) =AVERAGE(C4:C10)
• B) =AVERAGE(C4:C7)
• C) =AVERAGE(E4:E7)
• D) =AVERAGE(E4:E10)

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Definitions:

Economic Order Quantity

A formula used in inventory management for determining the optimal order size that minimizes the total costs of holding and ordering inventory.

Inventory Management

The process of ordering, storing, and using a company's inventory, including raw materials, components, and finished products.

Inventory Levels

The quantity of goods and materials on hand at a particular time within a business, reflecting how well stock is being managed in relation to sales or production demand.

Restocking Costs

Expenses associated with replenishing inventory or stock levels in a business.