The least unit cost method (luc) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

a. true.
b. false.

The answer is false.

Explanation:

The Least Unit Cost Method does not aim for the point where the costs of carrying and setup are equal. It's aim is to find the lowest cost for the specific lot. It is executed by calculating carrying costs and setup costs for each lot and then dividing it by the number of units to find the cost for each unit. Lastly according to the results, the lot with the smallest cost per unit is selected.

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