If managers decrease the size of the order they place, the ordering cost _____and the carrying cost _______
A)falls; rises
B)rises; falls
C)rises; rises
D)falls; falls

Question

Quizplus · Accepted Answer

When managers decrease the size of the order, the ordering cost rises because they need to place orders more frequently. The carrying cost falls because they hold less inventory at any given time.

If Managers Decrease the Size of the Order They Place