Which One of the Following Statements Regarding the Economic Order

question 72

Multiple Choice

Which one of the following statements regarding the economic order quantity (EOQ) is TRUE?

• A)The EOQ model combines several different item orders to the same supplier.
• B)If an order quantity is larger than the EOQ,the annual holding cost for cycle inventory exceeds the annual ordering cost.
• C)The EOQ model assumes a variable demand pattern.
• D)When the interest rate drops,the inventory holding cost decreases and the EOQ decreases.

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Definitions:

Compensation Systems

Frameworks within an organization that establish how employees are paid, including salary structures, benefits, and incentive plans.

Organizations

Entities or groups of people with a collective goal, structured and managed to meet a need or pursue shared goals.

All-Expenses-Paid Trip

A fully compensated journey where all costs associated with travel, accommodation, and sometimes meals and activities are covered by the sponsoring entity.

Extrinsic Reward

Rewards given to motivate employees that are tangible and external, such as salary increases or bonuses.