Start learning →

Which variable does not affect the optimal order quantity Q*?

AAnnual demand D
BOrdering cost K
CUnit purchase price P
DHolding cost h
Answer & Solution
Correct answer: C. Unit purchase price P
Q* depends only on K, D and h, so the unit purchase price does not alter it.
Practise this question with Quill — CA Inter →

Keep practising Working Capital

Browse all Working Capital questions for CA Inter, or explore more Financial Management topics.

Start a Working Capital lesson →
Related questions