Which of the Following Statements Is FALSE

question 2

Multiple Choice

Which of the following statements is FALSE?

• A)Firms may hold inventory because factors such as seasonality in demand mean that customer purchases do not perfectly match the most efficient production cycle.
• B)Inventory helps minimize the risk that the firm will not be able to obtain an input it needs for production.
• C)If a firm holds too much inventory,stock-outs,the situation when a firm runs out of product,may occur,leading to lost sales.
• D)Because excessive inventory uses cash,efficient management of inventory increases firm value.

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Definitions:

Acquiescent Response Set

A tendency for respondents to agree with statements as presented to them, regardless of their content, in the context of questionnaire data.

Test Items

are individual questions or tasks designed to measure specific knowledge, skills, or abilities in assessments or exams.

Unidimensionality

Refers to the measure in which a variable or construct is theorized to represent a single underlying dimension or trait.

Complex Evaluations

The assessment of subjects or entities based on multiple criteria or dimensions, often requiring sophisticated judgment and analysis.