The Possibility of a Conflict Between the Order Quantity That

question 18

Multiple Choice

The possibility of a conflict between the order quantity that an EOQ model recommends and the order quantity that the purchasing manager regards as optimal is increased with

• A) inventory costs which are computed with the FIFO method.
• B) lower priced inventory items.
• C) the absence of opportunity costs not being recorded in conventional accounting systems.
• D) the absence of quality costs not being recorded in conventional accounting systems.
• E) lower priced costs of goods sold.