Which type of cost reflects the ordering costs when the economic order quantity (EOQ) model is applied to units produced within the company?
A) the setup cost
B) the carrying cost
C) the ordering cost
D) the stockout cost

Question

Quizplus · Accepted Answer

In the EOQ model, when units are produced internally, the ordering cost is reflected as the setup cost, which includes the costs associated with preparing equipment or processes for production.

Which Type of Cost Reflects the Ordering Costs When the Economic