Of the Following,which Is NOT an Accurate Statement About the EOQ

question 30

Multiple Choice

Of the following,which is NOT an accurate statement about the EOQ model?

• A)The actual cost of the inventory item is ignored.
• B)Costs are divided into two categories: the cost of ordering and the cost of storage.
• C)EOQ is an attempt to determine the appropriate level of inventory.
• D)The EOQ assumes the sales rate fluctuates with seasonal changes.

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Definitions:

Samuel Johnson

An English writer, poet, and lexicographer best known for his dictionary of the English Language published in 1755.

American Independence

The status achieved by the thirteen American colonies, which declared their independence from the British Empire in 1776 with the Declaration of Independence, leading to the American Revolutionary War.

1776

The year most famously known for the Declaration of Independence by the Thirteen Colonies in North America, marking the beginning of the United States of America's journey toward independence from British rule.