Which One of the Following Statements Is Correct for a Firm

question 38

Multiple Choice

Which one of the following statements is correct for a firm that currently has total costs of carrying and ordering inventory that are 50% higher than total carrying costs?

• A) Current order size is greater than optimal.
• B) Current order size is less than optimal.
• C) Per unit carrying costs are too high.
• D)The optimal order size is currently being used.