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:

Lean Meat

Meat that has a relatively low content of fat, often recommended for a healthy diet.

Vegan Diet

A dietary choice that excludes all animal products and derivatives, focusing solely on plant-based foods.

Cream Of Broccoli

A thick, creamy soup made from pureed broccoli and often enriched with milk or cream.

Moroccan Carrot

A dish or ingredient preparation that involves carrots, often seasoned with spices typical of Moroccan cuisine.