Which of the Following Statements About Inventory and Storage Is

question 1

Multiple Choice

Which of the following statements about inventory and storage is TRUE?

• A) A distribution center is used to avoid unnecessary storing costs.
• B) Only government agencies can store products in public warehouses.
• C) Decisions about inventory levels are usually not of concern to marketing managers-since inventory levels are best determined based on the amount of the product produced.
• D) Achieving customer service goals makes a large inventory almost inevitable.
• E) Minimizing storage costs will lead to lower total distribution costs.

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Definitions:

General Ledger Account

A comprehensive record containing all the financial transactions of a business.

Aging

A method used in accounting to categorize a company's accounts receivables according to the length of time an invoice has been outstanding.

Accounts Receivable

The funds owed to a company by customers for goods or services delivered or used but not yet paid for.