Which of the Following Is a Difference Between the EOQ

question 99

Multiple Choice

Which of the following is a difference between the EOQ and the EPQ models?

• A)In the EOQ model,additional inventory is received all at once,but not in the EPQ model.
• B)In the EOQ model,there are quantity discounts available,but not in the EPQ model.
• C)In the EOQ model,lead time is known,but not in the EPQ model.
• D)In the EOQ model,shortages are allowed,but not in the EPQ model.

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Definitions:

Fixed Expenses

Consistent costs that do not change in total over a short period, regardless of the level of production or sales.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Operating Costs

Expenses associated with the day-to-day functionalities of a business, including costs for materials, labor, and overhead.

Scrap Value

The estimated residual value of an asset at the end of its useful life.