Which of the Following Statements About the Economic-Order-Quantity Decision Model

Multiple Choice

Which of the following statements about the economic-order-quantity decision model is FALSE?

A) It assumes purchasing costs are relevant when the cost per unit changes due to the quantity ordered.
B) It assumes quality costs are irrelevant if quality is unaffected by the number of units purchased.
C) It assumes stockout costs are irrelevant if no stockouts occur.
D) It assumes ordering costs and carrying costs are relevant.