Question $1$:$-$ EOQ is a point where:

a$)$ Ordering cost is equal to carrying cost

b$)$ Ordering cost is higher than carrying cost

c$)$ Ordering cost is lesser than the carrying cost

d$)$ Total cost is maximum

Question $2$:$-$ All of the following are the features of fixed costs EXCEPT:

a$)$ Although fixed within a relevant range of activity level but are relevant to a decision making when it is

avoidable.

b$)$ Although fixed within a relevant range of activity level but are relevant to a decision making when it is

incremental.

c$)$ Generally it is irrelevant

d$)$ It is relevant to decision making under any circumstances

Question $3$:$-$ Which of the following is not true about differential costs?

a$)$ It is a broader concept than variable cost as it takes into account additional fixed costs caused by

management decisions

b$)$ With the passage of time and change in situation, differential costs will vary

c$)$ The difference in cost between buying them from outside or make them in the company is differential cost,

irrelevant for decisions

d$)$ They are extra or incremental costs caused by a particular decision