A Larger Inventory Order Quantity _____________ Ordering Costs but _____________

question 22

Multiple Choice

A larger inventory order quantity _____________ ordering costs but _____________ holding costs,assuming both are measured over a specific period of time.

• A)increases,decreases
• B)has no effect on,increases
• C)has not effect on,decreases
• D)decreases,increases

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Definitions:

International Trade

The transfer of commodities, services, and finance across the borders or territories of various nations.

Volume Of Trade

The total quantity of shares or contracts traded for a particular financial instrument or market during a given period.

Transportation Costs

Expenses associated with the movement of goods or services from one location to another, affecting supply chain and final pricing.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing an option.