Correct Answer:
C. 500 units
EOQ = square root of (2 x 10,000 x 50 / 4) = square root of 250,000 = 500.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Annual demand is 10,000 units, ordering cost is Rs. 50 per order and holding cost is Rs. 4 per unit per year. The Economic Order Quantity (EOQ) is:
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