Which of the Following Statements Is Not True

question 50

Multiple Choice

Which of the following statements is not true?

• A)optimal inventory levels involve a trade-off between carrying costs and order costs
• B)carrying costs include the cost of storing goods as well as the cost of capital tied up in inventory
• C)inventory levels will be lower when storage or interest costs are high and will be higher when restocking costs are high
• D)inventory level does not rise in direct proportion to sales.as sales increase, the optimal inventory level rises, but more than proportionately

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Definitions:

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints, often based on their background, experiences, and biases.

Selective Exposure

The tendency of individuals to preferentially seek out and pay attention to information that conforms to their pre-existing beliefs and values, while avoiding contradicting information.

Federal Trade Commission

An independent agency of the United States government, established to promote consumer protection and eliminate and prevent anticompetitive business practices.

Selective Retention

The process by which individuals remember information that is consistent with their beliefs and attitudes, while forgetting or ignoring contradictory information.