Concerning the EOQ Model,if Demand or Annual Usage Increases by 10

question 45

Multiple Choice

Concerning the EOQ model,if demand or annual usage increases by 10 percent,then the EOQ will ___________.

• A)It depends on the particular product.
• B)increase
• C)decrease
• D)stay unchanged

---

Definitions:

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific department, project, or segment of a business.

Common Fixed Expenses

Overhead costs that do not vary with the level of production or sales, shared across different segments of a business.

Business Segments

Distinct parts of a company that can be separately identified by the products or services they offer or by geographic regions.

Break-Even Calculations

An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.