Which of the Following Is Not One of the Assumptions

question 15

Multiple Choice

Which of the following is not one of the assumptions in an economic order quantity (EOQ) model?

• A)Orders can be placed at any time
• B)Demand is constant
• C)Lead time for delivery of the product from the supplier is constant
• D)Annual holding cost is constant

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Definitions:

Old Partners' Capital Accounts

Accounts used to record the amount of equity owned by each partner in a partnership, prior to any changes or reallocation of partnership interests.

Credited

A term reflecting an entry on the right side of a double-entry bookkeeping system that increases liabilities, revenue, or equity accounts, or decreases an asset or expense account.

Withdraws

The act of removing funds from an account or the business use of assets by owners, reducing the capital or equity amounts.

Remaining Partners

The partners who continue the partnership business after one or more partners leave or are removed.