Recent interest rate increases have increased the cost of carrying the inventory. What will be the effect of this on EOQ, if the sales and order costs remain the same?

A) EOQ will increase
B) EOQ will increase slightly
C) EOQ will not change
D) EOQ will decrease

Answer: D) EOQ will decrease

Business

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In a functional allocation oil and gas program, which of the following statements are TRUE?

I. The general partner picks up all tangible drilling costs. II. The general partner picks up all intangible drilling costs. III. The limited partners pick up all tangible drilling costs. IV. The limited partners pick up all intangible drilling costs. A) II and III. B) I and II. C) III and IV. D) I and IV.

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When management analyzes whether to move production to another country or to keep the production located where it currently is, which of the following management responsibilities is being performed?

A) Adjusting B) Controlling C) Planning D) Directing

Business