Average Inventory in the EOQ Model Is Defined as

question 28

Multiple Choice

Average inventory in the EOQ model is defined as

• A)The order quantity divided by the number of inventory cycles per year
• B)Annual usage divided by the number of inventory cycles per year
• C)One-half the order quantity
• D)One-half the annual usage

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Definitions:

Retained Earnings

The share of a company's earnings that are held back and not distributed as dividends to its shareholders.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance.

Retained Earnings

The part of net profits that is not distributed as dividends but is kept by the company for reinvestment in its primary business or for debt repayment.

Dividends Declared

Profits distributed by a company to its shareholders, usually determined by the company's board of directors.