(iii) EOQ is the quantity correponding to the point of inteersection of carrying cost
line and ordeing cost line
(iv) At EOQ the total cost will be highest

A:-All statements are true
B:-Statement III alone is True
C:-Statements I, II and Ill are True
D:-Statements III and IV are True
Correct Answer:- Option-C

Question39:-Maximum consumption is 230 units, Minimum consumption is 180
units, Average consumption is 200 units, Maximum Reorder period is 15 days,
Minimum Reorder period is 10 days, Normal Reorder period is 12 days. Reorder
level is

A:-2400
B:-3450
C:-1800
D:-2000
Correct Answer:- Option-B

Question40:-Standard Quantity 250 units, Actual Quantity is 350 units, Standard
Price is Rs. 18, Actual Price Rs. 17 Material price variance is

A:-1800 unfavourable
B:-1700 unfavourable
C:-250 favourable

D:-350 favourable
Correct Answer:- Option-D

Question41:-Which of the following are TRUE with respect to Demand?

(i) Demand means desire backed by Willingness to pay for it and capacity to
negotiate

(ii) Demand for food items, clothes, etc. are example of autonomous demand
(iii) Demand for building materials such as cement, bricks etc, are examples of
derived demand

A:-Statements | and II are true
B:-Statements | and III are true
C:-Statements II and III are true
D:-All statements are true
Correct Answer:- Option-C

Question42:-Which is FALSE in respect of Demand Curve and Law of demand
(i) Inverse relationship between price and quantity demanded

(ii) Demand curve slopes upward from the origin

(iii) Demand curve touches X axis and falls in to negative territory

(iv) Giffen goods are exceptions to the law of demand

A:-Statements | and II are false