Which of the Following Statements About Inventory Control Is TRUE

question 33

Multiple Choice

Which of the following statements about inventory control is TRUE?

• A)Too little inventory may lead to opportunity costs in the form of missed sales.
• B)Too much inventory may reduce profitability due to increased financing and storage costs.
• C)Seasonality in sales may require a firm to hold different levels of inventory throughout the year.
• D)All of the statements about inventory control are true.

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Definitions:

Compressed Work-week

A work schedule that allows an employee to work a full-time job in fewer than the traditional five days of a standard work-week.

Participative Management Practices

A management approach where employees at all levels are involved in the decision-making process, enhancing collaboration and ownership.

Organizational Productivity

Refers to how efficiently an organization can convert inputs into outputs while maximizing quality and quantity.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees, affecting organizational stability and knowledge continuity.