EOQ Helps You Think in Terms of

question 34

Multiple Choice

EOQ helps you think in terms of

• A)buying and selling.
• B)ordering costs and carrying costs.
• C)borrowing cost and kiting costs.
• D)ordering cost and lost sales.

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Definitions:

Accounts Receivable

The amount customers need to pay enterprises for products or services they have received but not settled financially.

Common Stock

Common stock represents ownership interests in a corporation, giving shareholders voting rights and a share in the company’s profits through dividends.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of its profits.

Journal Entry

A recording in the accounting ledger that notes all the financial transactions of a business.