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The EOQ model for cash management defines the optimal level of cash to order through a variable known as storage costs. What do storage costs
The EOQ model for cash management defines the optimal level of cash to order through a variable known as "storage costs". What do storage costs represent in this model?
The difference between current assets and current liabilities | ||
The upper limit of cash allowed in the model | ||
The daily variance of cash flows | ||
The "opportunity" cost of lost investment earnings | ||
The transactions cost of obtaining cash |
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