Question

The Economic Order Quantity is when: holding costs equal ordering costs total costs are minimized the product cost is not considered to determine the quantity to be purchased all of the above none of the above

Answer 1

Answer: all of the above

Step-by-step explanation:

At the Economic Order Quantity level, the company is enjoying the lowest cost possible in relation to product ordering and storage because they are ordering just enough quantities that they are able to sell them just in time to order some new goods.

For this to happen, the holding cost must be equal to the ordering costs. At the EOQ, the product cost is irrelevant when the quantity to be bought is to be determined because it is minimized.