Which of the Following Statements Relating to Inventory Levels and Finance

question 30

Multiple Choice

Which of the following statements relating to inventory levels and finance is correct?

• A)Money tied up in inventories is an opportunity cost.
• B)Businesses have to balance money invested in inventory to ensure no missed sales whilst not over-investing.
• C)Overstocked businesses may find it is difficult to sell the inventory due to poor buying decisions.
• D)All of the above statements are correct.

---

Definitions:

Metatarsals

The five long bones in the foot that connect the ankle bones to those of the toes, playing a key role in mobility and weight distribution.

Tibia

The larger and stronger of the two bones in the lower leg, commonly referred to as the shin bone.

Talus

A bone in the ankle that sits between the heel bone and the two bones of the lower leg, allowing for ankle movement.

Palatine Bones

Bones that form part of the hard palate of the mouth as well as parts of the nasal cavity and eye orbits.