Which of the Following Is NOT TRUE Regarding Inventory Management

question 112

Multiple Choice

Which of the following is NOT TRUE regarding inventory management?

• A) The two fundamental inventory decisions are: where to order and what to order.
• B) Inventory management applies to goods and to services.
• C) Different types of inventory characteristics require different approaches for control.
• D) Stock-keeping units (SKUs) are often aggregated or partitioned into groups with similar characteristics or dollar value.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Market Value

The current price at which an asset or service can be bought or sold.

Water Policy

Regulations and standards governing the use, management, and conservation of water resources to ensure sustainability and equitable access.