Which of the Following Statements Is FALSE

question 11

Multiple Choice

Which of the following statements is FALSE?

• A)Under the Modigliani-Miller assumptions of perfect capital markets,the amount of inventory is irrelevant.
• B)Unlike trade credit,inventory represents one of the required factors of production.
• C)It is the firm's financial manager who must arrange for the financing necessary to support the firm's inventory policy and who is responsible for ensuring the firm's overall profitability.
• D)Inventory management receives extensive coverage in courses on operations management.

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Definitions:

Capacity Management

The practice of planning and controlling the resources of an organization or system to ensure optimal performance.

Product Flexibility

The ability of a company to modify its products to meet customer preferences or market demands.

Workforce Schedule

The planning of working hours and assignments for employees to ensure operational efficiency.

Available Capacity

The maximum amount of work that an organization is capable of completing in a given period without exceeding its resources.