menu
Sign up

What Is the Formula to Calculate Total Carrying Cost

Question 69
Multiple Choice

What is the formula to calculate total carrying cost? A) number of orders per year/cost of placing an order B) number of orders per year × cost of placing an order C) average number of units in inventory / cost of carrying one unit in inventory D) average number of units in inventory × cost of carrying one unit in inventory

Related questions
Q 70
What is characteristic of the economic order quantity (EOQ)? A) the quantity that maximizes total profit B) the quantity that maximizes carrying costs C) the quantity that minimizes total ordering cost D) the quantity that minimizes total inventory-related costs
Q 71
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
Q 72
Lauren Company orders 250 units at a time and places 15 orders per year. Total ordering cost is $1,600, and total carrying cost is $1,250. Which statement best describes the economic order quantity? A) The economic order quantity (EOQ) is 15. B) The economic order quantity (EOQ) is 250. C) The economic order quantity (EOQ) is less than 250. D) The economic order quantity (EOQ) is more than 250.
logo
© 2020-2021 Cozyplus FZ LLC. All rights reserved