5. When using the economic order quantity model:

ordering costs increase as the level of inventory increases. carrying costs decrease as the level of inventory increases. costs are minimized when total carrying costs and total ordering costs are equal. none of these.

6.Cost savings from JIT inventory management include(s):

reduced overhead expenses. lower inventory financing costs. greater productivity. all of these.

7.Which of the following yield curves would be characteristic during a period of high economic growth?

Upward sloping Downward sloping Horizontal Humped

8.The concept of a self-liquidating asset implies that:

the working capital associated with a product will be liquidated within a one year period. all the product will be sold, receivables collected and bills paid over the time period specified. assets associated with the production of a product will be liquidated over the depreciable life of the assets. self-liquidating assets be financed by long-term sources of capital.