Average Inventory Is Calculated as the (Maximum Inventory + Minimum

question 90

Multiple Choice

Average inventory is calculated as the (maximum inventory + minimum inventory) / 2 in ______.

• A)only the EPQ model
• B)only the EOQ model
• C)both EPQ and EOQ models
• D)neither EPQ nor EOQ models

---

Definitions:

Plant Assets

Long-term tangible assets that are used in the operations of a business and are not intended for sale, such as machinery, buildings, and land.

Tangible Assets

Physical assets that have a form, such as machinery, buildings, and inventory, which can be touched or seen.

Accounting Period

A period of time, such as a month, quarter, or year, over which financial statements are prepared to understand a business's financial position and performance.

Inadequacy

The state of being insufficient or not suitable for a specific purpose or requirements.