Which of the Following Statements Is False

question 11

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) Optimal inventory levels are lower when storage or interest costs are high and are 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:

Takeover Bid

In corporate law, the offer to buy the voting stock of a corporation.

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An entity or person who proposes a takeover or merger that is welcomed by the target company's board.

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The possible legal consequences or effects that actions or decisions can have, potentially influencing rights, duties, or liabilities.