Aeroboats Frame Corporation Increased the Size of Several Inventory Order

question 88

Multiple Choice

Aeroboats Frame Corporation increased the size of several inventory order quantities that had previously been determined using the EOQ model. What is the impact on the total annual ordering costs?

• A)increase
• B)decrease
• C)no change
• D)cannot be determined

---

Definitions:

Perception

The process of organizing, identifying, and interpreting sensory information to represent and understand the environment or an event.

Difference Threshold

The minimum difference in physical stimulation required to detect a difference between sensory inputs.

Absolute Threshold

The minimum level of stimulus intensity required for a stimulus to be detected at least 50% of the time by an observer.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as the "just noticeable difference."