Economic order quantity (EOQ) minimizes:

A Revenue

B Total inventory costs (ordering + carrying costs)

C Sales volume

D Cash flow

✓ Correct Answer: Option B

EOQ finds the optimal order quantity that minimizes the sum of ordering costs and holding/carrying costs.

💡 Why is B) the correct answer?

The correct answer to the question "Economic order quantity (EOQ) minimizes:" is Option B: Total inventory costs (ordering + carrying costs).

The other options — A) Revenue, C) Sales volume, D) Cash flow — are incorrect for this CPA Exam Prep question. As explained above: EOQ finds the optimal order quantity that minimizes the sum of ordering costs and holding/carrying costs.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Business Environment (BEC) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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Economic order quantity (EOQ) minimizes:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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