Which of the Following Statements Is False Regarding Inventory Management

question 73

Multiple Choice

Which of the following statements is false regarding inventory management?

• A) In general, a firm wants to produce a low level of sales per dollar of inventory.
• B) In general, a firm wants to produce a high level of sales per dollar of inventory.
• C) A high inventory turnover ratio or a low days' sales in inventory is generally a sign of good management.
• D) Extremely high levels for inventory turnover ratio and low levels for days' sales in inventory ratio may actually be a sign of bad firm or production management.

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Definitions:

Group Processes

The dynamic interactions and mechanisms that occur within a group, influencing its structure, decision-making, and member behavior.

Ideal Space

An optimal physical or psychological environment tailored to the specific needs or preferences of individuals or groups.

Climato-Economic Theory

A theory positing that the economic and climatic conditions of a region shape its culture's norms and practices, especially regarding how much emphasis is placed on future planning and social norms.

Van de Vliert

Refers to Evert Van de Vliert, a psychologist known for his research on how climate and economic conditions influence societal cultures, conflict, and cooperation.