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:

Special Order

A one-time customer order often involving a large quantity and possibly requiring adjustments to standard pricing or production processes.

Variable Manufacturing Cost

Costs that vary in direct proportion to changes in production volume, such as raw materials and direct labor.

Variable Selling Cost

Variable selling costs fluctuate with sales volume; they include expenses such as commission and shipping that increase with higher sales.

Constrained Resource

A limited resource within a system that significantly affects the throughput or output of the system.