If an Item Is Ordered at Its Economic Order Quantity,the

question 29

Multiple Choice

If an item is ordered at its economic order quantity,the annual carrying cost should be:

• A)slightly less than the annual ordering cost.
• B)equal to the annual ordering cost.
• C)twice the annual purchase price.
• D)the square root of the annual ordering cost.
• E)cannot be determined because there is insufficient information provided.

---

Definitions:

Abyssal Plain

A relatively flat, smooth region of the deep ocean floor.

Divergent Boundary

A tectonic boundary where two tectonic plates move away from each other, often creating new crust as magma rises to the surface.

Convergent Boundary

A tectonic plate boundary where two plates move toward each other, often causing one plate to dive beneath the other, leading to mountain formation or volcanic activity.

Active Continental Rift

A region where a continent is actively being stretched and thinned, often leading to the formation of new crust and the potential for volcanic activity.