| A company determines its order quantity for a raw material using the EOQ model.What would be the effects on the EOQ and on the total annual stockholding cost of a decrease in the cost of
 placing an order for the raw material?
 EOQ                                Total annual
 stockholding cost
 A   Increase                              No effect
 B   Decrease                            No effect
 C   Increase                              Increase
 D   Decrease                            Decrease
 D
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