If the EOQ Is Ordered, Which of the Following Is

question 68

Multiple Choice

If the EOQ is ordered, which of the following is true?

• A) Annual ordering cost exceeds annual holding cost.
• B) Annual holding cost exceeds annual ordering cost.
• C) Annual ordering cost is equal to annual holding cost.
• D) The sum of annual ordering cost plus annual holding cost is maximized.
• E) The annual holding cost curve is decreasing.

---

Definitions:

Unintended

Refers to effects or outcomes that were not anticipated or planned for.

Deregulation

The reduction or elimination of government power in a particular industry, usually with the goal of increasing competition and efficiency.

Regulated Industries

Sectors of the economy that are subject to governmental controls and regulations, often to protect public interest.

Decreased Prices

A situation where the cost of goods or services is reduced from a previous level.