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Which of the following statements is true of the economic-order-quantity decision model? ...

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Question

Accounting

Which of the following statements is true of the economic-order-quantity decision model?

a.

It assumes purchasing costs are relevant because the cost per unit changes due to the quantity ordered.
b.

It assumes that ordering costs and carrying costs are irrelevant.
c.

It assumes that stockout costs are relevant even if no stockouts occur.
d.

Demand, ordering costs, and carrying costs are all known with certainty.
e.

None of the answers.

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