Which of the Following Statements Is Not True

question 32

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:

Torque Capacity

The maximum rotational force that a component or system can handle safely and efficiently.

Torque Proportional

Torque proportional describes a relationship where torque, or the twisting force that causes rotation, varies in direct proportion to another variable, often used in engineering to analyze mechanical systems.

Interaxle Differential

A differential located between the front and rear axles of a vehicle, allowing for differences in wheel speed when cornering, improving traction and handling.

Drive Axles

The part of a vehicle's drivetrain that transmits power from the transmission to the wheels, enabling them to rotate and propel the vehicle.