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    Economic Order Quantity

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    Which of the following is true about disbursement float?
    a. Funds are removed from the checking account immediately when the check clears the checking account.
    b. Funds are deposited to a checking account immediately when a check is written.
    c. Funds are collected and credited to an account.
    d. Funds are collected and debited to an account.
    e. none of the above.

    Which of the following is true when calculating Economic Order Quantity?
    a. Ordering cost is greater than carrying cost.
    b. Ordering cost is less than carrying cost.
    c. Ordering cost is equal to carrying cost.
    d. Total cost is equal to price times quantity.

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    Solution Preview

    Disbursement Float
    Money that a person or company has spent but that has not yet been taken out of one's bank account. A disbursement float occurs when a person or company writes a check; when the check is ...

    Solution Summary

    Response discusses the economic order quantity and disbursement float.