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:

Biased

Showing an unfair tendency to believe that some people, ideas, etc., are better than others, which can affect judgment and decision-making.

Representative

A person chosen or appointed to act or speak for another or others, often in decision-making processes.

Incidence

Number of new cases of a specific disorder that develop during a specific period of time.

New Cases

refers to instances or incidents of a disease or condition that have been diagnosed or reported for the first time within a specified period.