Which of the Following Statements Is False

question 74

Multiple Choice

Which of the following statements is false?

• 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 levels do not rise in direct proportion to sales. As sales increase, the optimal inventory level rises, but more than proportionately.

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Definitions:

Pelvic Cavity

The space within the pelvis that houses the reproductive organs, urinary bladder, and rectum in humans.

Serosa

A smooth membrane consisting of a thin layer of cells that secrete serous fluid, covering internal organs and body cavities.

Alimentary Canal

The whole passage along which food passes through the body from mouth to anus, including the esophagus, stomach, and intestines.

Peritoneum

The double-walled, outermost layer of the alimentary canal; also called the serosa.