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    Cornerstones of Cost Accounting Study Set 1
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    Exam 20: Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints
  5. Question
    Margaret Company Has an Economic Order Quantity for Item B
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Margaret Company Has an Economic Order Quantity for Item B

Question 32

Question 32

Multiple Choice

Margaret Company has an economic order quantity for item B of 100 units.The annual demand for the product is 1,400 units, and the unit carrying cost per year is $7.What is the cost of placing an order?


A) $8
B) $25
C) $200
D) $2

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