Which One of the Following Statements Is NOT True

question 28

Multiple Choice

Which one of the following statements is NOT true?

• A) The economic order quantity (EOQ) mathematically determines the minimum total inventory cost.
• B) The EOQ ignores reorder costs and inventory carrying costs.
• C) The optimal order size is determined by the EOQ model.
• D) All of the above.

---

Definitions:

Investing Activities

Activities related to buying and selling long-term assets and various investments, which appear in a firm's statement of cash flows.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at two or more different points in time, allowing for trend analysis.

Financing Activities

Transactions related to raising funds or repaying investors, such as issuing debt or equity, or repaying loans.

Cash Dividend

Cash or stock disbursement from a firm to its owners, typically stemming from the company's profits.