Multiple Choice Questions on At EOQ the variable cost can be calculated as ........ for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

At EOQ the variable cost can be calculated as ........

Costing - Phase (I & II) Basics of Cost Control and Analysis
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    At EOQ the variable cost can be calculated as:

    √ 2 (x) C (x) O (x) I

    Correct Answer

    √ 2 (x) C (x) O

    Incorrect Answer

    √ 2 (x) C

    Incorrect Answer

    None of the above

    Incorrect Answer
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    Explanation:

    Economic Order Quantity (EOQ) is the quantity to be ordered at one time to minimize the overall variable cost i.e. total ordering cost and carrying cost. At this quantity, the carrying cost = ordering cost. It is calculated as:

    √ 2 (x) C (x) O (x) I

    By: Vikas Goyal
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