{"id":48713,"date":"2024-04-15T22:45:15","date_gmt":"2024-04-15T22:45:15","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=48713"},"modified":"2024-04-15T22:45:15","modified_gmt":"2024-04-15T22:45:15","slug":"calculate-eoq-approx-from-the-following-details-annual-consumption-24000-units-ordering-cost-rs-10-per-order-purchase-price-rs-100-per-unit-carrying-cost-5","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/calculate-eoq-approx-from-the-following-details-annual-consumption-24000-units-ordering-cost-rs-10-per-order-purchase-price-rs-100-per-unit-carrying-cost-5\/","title":{"rendered":"&#8220;Calculate EOQ (approx) from the following details: Annual Consumption: 24000 units Ordering cost: Rs 10 per order Purchase price: Rs 100 per unit Carrying cost: 5%&#8221;"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;310&#8243; option2=&#8221;400&#8243; option3=&#8221;290&#8243; option4=&#8221;300&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. 310.<\/p>\n<p>The economic order quantity (EOQ) is the optimal quantity of an item to order at a time in order to minimize the total inventory costs. It is calculated using the following formula:<\/p>\n<p>EOQ = \u00e2\u0088\u009a(2<em>Annual Consumption<\/em>Ordering Cost)\/(Carrying Cost*Purchase Price)<\/p>\n<p>In this case, the annual consumption is 24000 units, the ordering cost is Rs 10 per order, the purchase price is Rs 100 per unit, and the carrying cost is 5%. Substituting these values into the formula, we get:<\/p>\n<p>EOQ = \u00e2\u0088\u009a(2<em>24000<\/em>10)\/(5*100) = 310.<\/p>\n<p>The other options are incorrect because they do not represent the EOQ for the given values.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;310&#8243; option2=&#8221;400&#8243; option3=&#8221;290&#8243; option4=&#8221;300&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-48713","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>&quot;Calculate EOQ (approx) from the following details: Annual Consumption: 24000 units Ordering cost: Rs 10 per order Purchase price: Rs 100 per unit Carrying cost: 5%&quot;<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/calculate-eoq-approx-from-the-following-details-annual-consumption-24000-units-ordering-cost-rs-10-per-order-purchase-price-rs-100-per-unit-carrying-cost-5\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"&quot;Calculate EOQ (approx) from the following details: Annual Consumption: 24000 units Ordering cost: Rs 10 per order Purchase price: Rs 100 per unit Carrying cost: 5%&quot;\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;310&#8243; 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