Relevant total costs in the economic-order-quantity (EOQ)decision model equal relevant ordering costs plus relevant:
A)purchasing costs.
B)carrying costs.
C)quality costs.
D)stockout costs.

Question

Quizplus · Accepted Answer

The relevant total costs in the economic-order-quantity (EOQ) decision model include relevant ordering costs and relevant carrying costs. Purchasing costs, quality costs, and stockout costs are not included in the relevant total costs for the EOQ model.

Relevant Total Costs in the Economic-Order-Quantity (EOQ)decision Model Equal Relevant