Economic order quantity is that quantity at which cost of holding and carrying inventory is:

A Maximum and equal
B Minimum and equal
C It can be maximum or minimum depending upon case to case
D Minimum and unequal

Correct Answer: Minimum and equal

Economic order quantity is that quantity at which cost of holding and carrying inventory is minimum and equal. Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables. This is done to minimize inventory holding costs and order-related costs.
Bissoy MCQ
#Commerce #Costing

Related Questions

If A is the total items consumed per year, P is the procurement cost per order, and C is the annual inventory carrying cost per item, then the most economic ordering quantity is given by
A $$\frac{{{\text{AP}}}}{{\text{C}}}$$
B $$\frac{{2{\text{AP}}}}{{\text{C}}}$$
C $$\sqrt {\frac{{2{\text{AP}}}}{{\text{C}}}} $$
D $${\left( {\frac{{{\text{AP}}}}{{\text{C}}}} \right)^2}$$
একটি মজুত পণ্যের ক্রয়মূল্য ১৫,৫০০ টাকা ও বাজার মূল্য ১২,৫০০ টাকা, যা বছর শেষে মজুত পণ্যের গণনা থেকে বাদ পড়ে গেছে। এই মজুত পণ্যটি সঠিকভাবে হিসাবভুক্ত হলে ব্যবসার মুনাফার ওপর বিরূপ প্রভাব ফেলবে? (An inventory having cost price and market price of Tk. 15,500 and Tk. 12,500 respectively has been omitted while counting the inventory at the year end. What would be the effect on business profit, if this inventory is properly accounted for?)
A মুনাফা ১৫,৫০০ টাকা কমবে। (Decrease of profit by Tk. 15,500)
B মুনাফা ৩,০০০ টাকা কমবে। (Decrease of profit by Tk. 3,000)
C মুনাফা ৩,০০০ টাকা বাড়বে। (Increase of profit by Tk. 3,000)
D মুনাফা ১২,৫০০ টাকা বাড়বে। (Increase of profit by Tk. 12,500)
Carlos Company had Beginning inventory of TA. 80,000, ending inventory of TA. 110,000 cost of goods sold of TA. 285,000 and sales of TK 475. 000 Carlos's days in inventory is:
A 73 days
B 102.5 days
C 121.7 days
D 84.5 days
Carlos Company had beginning inventory of TA, 80,000 ending inventory of TA. 110,000, cost of goods sold of TA. 285,000, and sales of TK. 475,000. Carlos's days in inventory is
A 72 days
B 102.5 days
C 121.7 days
D 84.5 days
রংধনু সু স্টোরের প্রারম্ভিক মজুদপণ্যের জের ২৫,০০০ টাকা। উক্ত হিসাবকালে ক্রয় ৫০,০০০ টাকা, অন্য ফেরত ২,৫০০ টাকা ও আত্মপরিবহণ ব্যয় ১৫,০০০ টাকা ছিল। হিসাব শেষে গণনার পর দেখা যায় ২০,০০০ টাকার পণ্য এখনও হাতে আছে। বিক্রয়যোগ্য পণ্যের ব্যয়ের পরিমাণ ছিল ___। (Rangdhanu Shoe Store had a beginning merchandise inventory of Tk. 25,000. During the period, purchases were of Tk. 50,000, purchase returns were of Tk. 2,500 and freight-in was of Tk. 15,000. A physical count of inventory at the end of period revealed that Tk. 20,000 was still on hand. The cost of goods available for sale was __.
A ৪২,৫০০ টাকা (Tk. 42,500)
B ৫২,৫০০ টাকা (Tk. 52,500)
C ৬৭,৫০০ টাকা (Tk. 67,500)
D ৮৭,৫০০ টাকা (Tk. 87,500)
If the beginning inventory is Tk 18,000, Purchase is Tk 86,000, Purchase return is Tk 4,000, Sales is Tk 1,20,000 and the mark-up on the cost is 25%, then what is the value of closing inventory?
A Tk 2000
B Tk 4000
C Tk 6000
D Tk 10000
E None of these
Which one of the following methods of inventory costing produces ending stock cost close to the market value of the inventory?
A FIFO
B LIFO
C AVCO or averrage cost
D None of the above
Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?
A Replacement cost method
B Standard cost method
C AVCO or average cost
D FIFO method
Given figures showing : Sales Taka 8,200, Opening inventory Taka 1,300, Closing inventory Taka 900, Purchases Taka 6+,400, Carriage inwards Taka 200, the cost of goods sold figure is :
A Taka 6800
B Taka 6200
C Taka 7800
D Taka 7000
In inventory control, the economic order quantity is the
A Optimum lot size
B Highest level of inventory
C Lot corresponding to break-even point
D Capability of a plant to produce

Next steps