QUESTION 8

When ordering at the economic order quantity, which of the following is NOT true?

a.

total variable cost equals the holding cost

b.

the time dimension used for demand and holding cost must be the same in the formula

c.

total holding costs equals total ordering or setup costs

d.

holding costs are generally determined in dollars worth of inventory and then converted to individual item basis using a specified holding rate

e.

all of the above are true