Which of the Following Identifies the Goal of Managers Who

question 8

Multiple Choice

Which of the following identifies the goal of managers who use the economic order quantity (EOQ) model?

• A)minimizing carrying costs and ordering costs
• B)maximizing carrying costs and ordering costs
• C)maximizing carrying costs and minimizing ordering costs
• D)maximizing carrying costs and total costs

---

Definitions:

Permanent Income Hypothesis

A theory suggesting that an individual's consumption at any given time is determined not just by current income but also by their longer-term income expectations.

Consumption

The action of using goods or services for personal use, satisfaction, or to fulfill needs.

Expected Income Stream

The anticipated series of payments received over time, often from investments, employment, or other sources of income.

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term average income rather than their current income.