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    Foundations of Financial Management
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    Exam 7: Current Asset Management
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    Lower Ordering Costs Would Tend to Increase a Firm's Economic
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Lower Ordering Costs Would Tend to Increase a Firm's Economic

Question 17

Question 17

True/False

Lower ordering costs would tend to increase a firm's economic order quantity.
By reducing the numerator in the basic EOQ formula, quantity (the quotient) is reduced.

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