Quantity discounts lower the unit costA) but tend to increase the required batch size and as a result,reduce the cycle inventory.B) but tend to increase the required batch size and as a result the cycle inventory.C) and tend to reduce the required batch size and as a result the cycle inventory.D) and tend to reduce the required batch size and as a result,increase the cycle inventory.

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Candice Middleton · Accepted Answer

Final Answer : B, Explanation :  Quantity discounts often encourage buyers to purchase in larger quantities to benefit from the lower unit cost, which increases the required batch size. This, in turn, increases the cycle inventory because companies hold more stock to take advantage of the discounts.

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