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Which of the Following Statements About Quantity Discounts Is False

Question 95

Multiple Choice

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 annual demand, the less attractive a discount schedule will be.
E) The smaller the ordering cost, the less attractive a discount schedule will be.

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