Which of the Following Statements About Quantity Discounts Is FALSE

question 151

Multiple Choice

Which of the following statements about quantity discounts is FALSE?

• A) The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs.
• B) In inventory management, item cost becomes relevant to order quantity decisions when a quantity discount is available.
• C) If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule.
• D) The larger the annual demand, the less attractive a discount schedule will be.
• E) The smaller the ordering cost, the less attractive a discount schedule will be.

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Definitions:

Polygenic Inheritance

Pattern of inheritance in which multiple genes at different sites on chromosomes affect a complex trait.

Recessive Inheritance

Pattern of inheritance in which a child receives identical recessive alleles, resulting in expression of a nondominant trait.

Dominant Inheritance

Pattern of inheritance in which, when a child receives different alleles, only the dominant one is expressed.

Polygenic Inheritance

The inheritance of traits that are determined by multiple genes, contributing to the phenotype in a cumulative or additive manner.