Order through variable known as storage costs

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Reference no: EM131535505

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

Reference no: EM131535505

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