If the variables in the EOQ inventory model are defined as: S = ...

[Chloeellawright]

If the variables in the EOQ inventory model are defined as: S = total units demanded during the
  planning period, O = ordering costs per order, C = carrying costs per unit and Q = inventory order
  size in units, then the average level of inventory
 
  which a company should have during the
  planning period is
  A) 1/2 S. B) 2/3 Q. C) 1/2 Q. D) SO/C.

Question 2

Unsystematic risk
 
  A) is also known as nondiversifiable risk.
  B) can be diversified away.
  C) is system-wide risk.
  D) is equal to 2 times the systematic risk.

[mochi09]

Answer to Question 1

C

Answer to Question 2

Answer: B