The ________ is an inventory technique that takes into account various operating and financial costs to determine the order quantity for a specific inventory item.
A) JIT system
B) ABC system
C) EOQ model
D) LIFO model

Question

Quizplus · Accepted Answer

The EOQ (Economic Order Quantity) model takes into account the carrying costs (such as storage and handling costs) and ordering costs (such as purchasing and transportation costs) of inventory to determine the optimal order quantity. A and D are not inventory techniques, and while the ABC (Activity-Based Costing) system can help manage inventory, it does not specifically determine order quantity.

The ________ Is an Inventory Technique That Takes into Account