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CIMAPRA19-E01-1 Exam - Topic 4 Question 106 Discussion

Actual exam question for CIMA's CIMAPRA19-E01-1 exam

Question #: 106
Topic #: 4

[All CIMAPRA19-E01-1 Questions]

Which of the following is NOT an element of the EOQ (Economic Order Quantity) equation?

ATotal purchases per year

BTotal ordering cost per order

CTotal inventory cost per year

DThe reorder quantity

Show Suggested Answer

Suggested Answer: A, B, C, D

by Melda at Jan 27, 2025, 01:43 AM

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Veronika

9 months ago

Totally agree with you, Aileen!

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Alverta

10 months ago

Wait, is "total inventory cost" really not in the EOQ? Sounds off.

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German

10 months ago

I thought reorder quantity was important too, but it's not in EOQ.

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Aileen

10 months ago

Definitely not D, that's not part of the equation!

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Chu

10 months ago

The EOQ formula includes total purchases and ordering costs.

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Gennie

10 months ago

I believe total purchases per year is part of the equation, but I can't recall if total inventory cost is included or not.

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Cherelle

11 months ago

I’m a bit confused; I thought the reorder quantity was part of the EOQ, but now I’m questioning if it’s actually an element.

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Annelle

11 months ago

I remember practicing a question that asked about the components of EOQ, and I feel like the total inventory cost is definitely included.

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Jamal

11 months ago

I think the EOQ formula includes total purchases and ordering costs, but I'm not sure about the reorder quantity being part of it.

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Leslie

11 months ago

This is a tricky one. I'll need to review my notes on the EOQ formula to be sure I'm selecting the right answer. I don't want to guess and risk getting it wrong.

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Kristian

11 months ago

Okay, let me think this through. The EOQ equation is used to determine the optimal order quantity to minimize total costs, so it must include things like total purchases, ordering costs, and inventory costs. I'll go with option A as my final answer.

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Glory

11 months ago

Hmm, I'm a bit confused on this one. I know the EOQ equation has to do with inventory management, but I can't recall all the specific elements off the top of my head.

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Mammie

11 months ago

I'm pretty sure the reorder quantity is an element of the EOQ equation, so I'll eliminate option D.

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Nathalie

1 year ago

Haha, this question is like a game of 'one of these things is not like the other'. The reorder quantity is the star of the show here, so D has to be the right answer.

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Cammy

1 year ago

Definitely, D is the odd one out in this equation.

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Malcom

1 year ago

Yeah, it's all about finding that sweet spot for ordering and inventory costs.

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Shawnna

1 year ago

I agree, the reorder quantity is not part of the EOQ equation.

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Hildegarde

1 year ago

Hmm, this one's tricky. I'm leaning towards D, since the reorder quantity is what the whole equation is trying to determine. But I'll double-check my notes just to be sure.

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Iola

1 year ago

Let me know if you find anything different in your notes, but I'm pretty confident it's D.

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Anisha

1 year ago

I agree, the reorder quantity is actually a key component of the EOQ equation.

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Linwood

1 year ago

I think you're right, D seems like the odd one out here.

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Graciela

1 year ago

I'm going to have to disagree with D. The reorder quantity is definitely a key component of the EOQ equation. This question is trying to trip us up, but I'm not falling for it.

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Wynell

1 year ago

A) Total purchases per year

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Irma

1 year ago

I agree, the reorder quantity is definitely important in the EOQ equation.

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Justine

1 year ago

C) Total inventory cost per year

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Alfreda

1 year ago

I think D is not part of the EOQ equation.

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Rolande

1 year ago

D) The reorder quantity

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Annelle

1 year ago

C) Total inventory cost per year

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Cordell

1 year ago

B) Total ordering cost per order

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Michal

1 year ago

Yeah, I think the question is trying to trick us. The reorder quantity is important for calculating the economic order quantity.

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Douglass

1 year ago

A) Total purchases per year

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Cherry

1 year ago

I agree, the reorder quantity is definitely part of the EOQ equation.

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Laurene

1 year ago

The total reorder quantity? That's like asking which part of a cake recipe isn't the cake itself. Clearly, the D option is the odd one out here.

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Bettina

1 year ago

But the EOQ equation focuses on minimizing total costs, so it makes sense that the reorder quantity is included.

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Giuseppe

1 year ago

I disagree, I believe it's A) Total purchases per year.

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Bettina

1 year ago

I think the answer is D) The reorder quantity.

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