A company always determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model. Which of the following statements in respect of the EOQ is FALSE?

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Economics · Cost Accounting

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Total ordering costs decrease with the increase in the number of orders

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Answer 1

Total ordering costs decrease with the increase in the number of orders

Answer 2

Purchase price per unit is constant

Answer 3

The holding cost per unit is constant

Answer 4

If the holding cost is expressed for a year, then demand should also be for a year

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