Why is the annual purchase (material) cost not considered to be a relevant inventory cost if the

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Why is the annual purchase (material) cost not considered to be a relevant inventory cost if the EOQ assumptions are met?

a. This cost will be zero.

b. This cost is constant and not affected by the order quantity.

c. This cost is insignificant compared with the other inventory costs.

d. This cost is never considered to be an inventory cost.

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Quantitative Analysis For Management

ISBN: 213168

12th Edition

Authors: Barry Render ,Ralph M. Stair ,Michael E. Hanna

Question Posted: Feb 25, 2024 01:00 AM

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Why is the annual purchase (material) cost not considered to be a relevant inventory cost if the

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The correct answer is b This cost is constant and not affected by the order quantity Explanation The ...View the full answer

Quantitative Analysis For Management

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