Which One of the Following Statements Is True

Multiple Choice

Which one of the following statements is true?

A) The EOQ is most accurate when both inventory and order costs are estimated on a full cost basis.
B) The EOQ is most accurate when both inventory and order costs are estimated on a pure variable cost basis.
C) The EOQ is most accurate when inventory costs are estimated on a full cost basis while order costs are estimated on a pure variable cost basis.
D) The EOQ is most accurate when inventory costs are estimated on a pure variable cost basis while order costs are estimated on a full cost basis.