Which of the Following Factor(s) Would Not Cause a Reduction

question 62

Multiple Choice

Which of the following factor(s) would not cause a reduction in the EOQ?

• A) long-run purchasing arrangements, fixing price and quality
• B) electronic commerce
• C) increasing use of purchase order cards
• D) labour-intensive procurement methods
• E) increase in carrying cost [C]

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing shareholders' ownership.

Earnings

The amount by which revenues exceed expenses.

Outstanding Shares

The aggregate amount of a company's shares that have been distributed and are owned by investors.