The Economic Order Quantity Ignores

question 46

Multiple Choice

The economic order quantity ignores:

• A)purchasing costs
• B)relevant ordering costs
• C)stockout costs
• D)Both A and C are correct.

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Definitions:

Marginal Utility

The additional satisfaction or happiness gained from consuming an additional unit of a good or service.

Paint

A substance used to apply color or protection, consisting of pigment suspended in a liquid or paste medium such as oil or water.

Chicken

A type of poultry that is widely consumed around the world for its meat and eggs, and is considered a staple in many diets.

Lobsters

Marine crustaceans with a hard protective exoskeleton and long antennae, often considered a delicacy.