Which of the following statements is false regarding inventory management?
A) In general, a firm wants to produce a low level of sales per dollar of inventory.
B) In general, a firm wants to produce a high level of sales per dollar of inventory.
C) A high inventory turnover ratio or a low days' sales in inventory is generally a sign of good management.
D) Extremely high levels for inventory turnover ratio and low levels for days' sales in inventory ratio may actually be a sign of bad firm or production management.
Correct Answer:
Verified
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