Which of the following statements about quantity discounts is false?
A) The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs.
B) In inventory management, item cost becomes relevant to inventory decisions only when a quantity discount is available.
C) If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule.
D) The larger the annual demand, the less attractive a discount schedule will be.
E) The smaller the ordering cost, the less attractive a discount schedule will be.

Question

Quizplus · Accepted Answer

The larger the annual demand, the more attractive a discount schedule typically becomes because buying in larger quantities to meet the higher demand can lead to greater savings through quantity discounts.

Which of the Following Statements About Quantity Discounts Is False