Under Economic-Order-Quantity Decision Model,it Is Assumed That ________

question 78

Multiple Choice

Under economic-order-quantity decision model,it is assumed that ________.

• A) the quantity ordered can vary at each reorder point
• B) demand, ordering costs, and carrying costs are uncertain
• C) the purchasing cost per unit is affected by the order quantity
• D) no inventory stockouts occur

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Definitions:

Effective Rate

Refers to the real rate of interest earned or paid on an investment, loan, or other financial product, adjusted for the effect of compounding over a given period.

Return Required

The minimum expected rate of return on an investment necessary for an investor to consider it worthwhile.

Interest-Bearing Note

A debt instrument that pays interest to the holder, typically issued at face value and redeemed at maturity for the same amount plus accrued interest.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes.