The Cost of a Widget Is $5,and the Carrying Rate

question 14

Multiple Choice

The cost of a widget is $5,and the carrying rate is 40%;cost of processing an order is $25,annual demand is for 400 widgets,and supply and usage patterns are stable.What is the economic order quantity (EOQ) ?

• A)5
• B)20
• C)25
• D)100
• E)200

---

Definitions:

Managing Accounts Receivables

The process of overseeing the money owed to a business by its customers, ensuring timely collection and managing credit risk.