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:

Warranty Repairs

Services offered to fix or replace defective products within a specified period, as guaranteed by the warranty terms.

Contingency Loss

A potential financial loss that may occur in the future due to uncertain events or conditions.

Debt Principal

Debt Principal is the original amount of money borrowed in a loan, excluding any interest or fees.