The Maximum Total Variable Cost Always Occurs at the Cross

question 107

True/False

The maximum total variable cost always occurs at the cross point of Lines A and B,
e.g.,as shown in Figure 14-3.Line A is the variable carrying cost as a function of ordering quantity,Q.Line B is the variable ordering cost as a function of Q.

---

Definitions:

Organizational Citizenship

The behavior of an individual that is discretionary, not directly or explicitly recognized by the formal reward system, and that promotes the effective functioning of the organization.

Good or Bad

Terms describing the positive or negative judgement or quality of an action, decision, or outcome within an organizational or general context.

Hierarchy of Values

A ranked system of personal or societal principles and beliefs determining what is most important to an individual or community.

Preferences Differ

Preferences differ highlights the individual variations in choices, likes, or dislikes among people based on their personal experiences, values, or cultural backgrounds.