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    Cornerstones of Cost Management Study Set 3
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    Exam 20: Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints
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    Dry Creek Company Decreased the Size of Inventory Order Quantities
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Dry Creek Company Decreased the Size of Inventory Order Quantities

Question 84

Question 84

Multiple Choice

Dry Creek Company decreased the size of inventory order quantities that had previously been determined using the EOQ model. What is the impact on the total amount of annual carrying and ordering costs?


A) no change
B) decrease
C) increase
D) cannot be determined

Correct Answer:

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