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:

Quantitative Data

Data that can be quantified and verified, and is amenable to statistical manipulation.

Qualitative Data

Non-numerical information obtained through methods like interviews, observations, or subjective assessments, focusing on experiences and interpretations.

Face-to-face Interviews

A qualitative research method involving direct, in-person conversation between an interviewer and respondent to gather data.

Qualitative Data

Non-numerical information collected through observation, interviews, or open-ended questions that provides insights into people's beliefs, experiences, and behaviors.